Avoiding Mistakes After Bankruptcy
Once you have gone through the bankruptcy process, and come out safely on the other side, remember that you’re not quite done yet. There is still work to be done in getting on the right financial track. Bankruptcy can be a great opportunity to develop new, good financial habits and avoid some known credit pitfalls.
There are a few guidelines everyone can follow in order to maintain and maximize financial freedom.
Let’s talk about a few of them:
- Create a budget and stick to it. Living within a budget helps you keep your spending in check and will prevent the need to use credit for purchases. Your budget should be realistic and goal-oriented, and as specific to you as possible.
- Make your payments. If you follow a payment plan or file for Chapter 13, this is the most important. Make all of your payments, and make them on time.
- Pay your bills on time. Create a system that helps you keep track of all of your bills. This should be in conjunction with your budget. This will help rebuild credit and reduce stress each month.
- Rebuild savings. Once all your debts are discharged, build savings into your budget. Establishing a savings account prepares you for emergencies and prevents you from having to borrow or use your credit card for unexpected expenses.
- Resist new credit card offers. Shockingly enough, you may receive offers for new credit cards even before you are done with your bankruptcy. These offers should be ignored. The cards often come with hefty fees and high interest rates.
- Check your credit report. You can get a free copy of your credit report two months after your debts are discharged. Check for any mistakes or inconsistencies.
- Establish good credit. You can work on rebuilding your credit by getting a secured credit card. This card will require you to make a deposit equal to the amount you can use the card for. The advantage is that they are reported to the credit reporting agencies and over time your limit can increase without additional deposits, an important step in the rebuilding process.
Part of the process of bankruptcy is rebuilding. It’s a chance to start over and do things a better way. It will take hard work and discipline but many people do it each year, you are not alone.
If you are having trouble re-building your credit and need help, a full service debt relief law firm such as Harold Shepley & Associates may be able to help. They can assist you in cleaning up information on your credit report. Contact them today for assistance.
February 2, 2012 Posted in Bankruptcy Tagged bankruptcy, file for bankruptcy, Harrisburg, Nationwide, Pennsylvania, Pittsburg Leave a comment
