Filing for bankruptcy can be a huge hindrance and set back in a person’s life, but the good news is that you can always start over. Just because your finances are not what they should be and you are having a few difficulties with your credit does not mean you can’t turn it all around and have excellent credit and finances in the not so distant future. The first thing you need to start doing after filing for bankruptcy is to start up a new savings account. Talking with your banker to figure out how best to re-establish your credit is also something you should consider.
The most important thing to do is to prove that you can be a persistent and non-risky saver. Always pay yourself first, do not rack up charges on your credit card, and only buy things you absolutely need. Nothing lasts forever; the bankruptcy filing will only stay on your credit report for 10 years. In that time, it is integral that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit, and not applying for too much credit at once.
To re-establish your credit you will have to get credit. It might seem smart to try and live on cash without credit after bankruptcy, but that is not wise. You are going to have to exercise self-control and show lenders that you are capable of handling your credit. Figure out what went wrong the first time and learn from your mistakes. Make a budget, create and emergency fund, and save a percentage of your salary no matter what.
Sources:
http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/7StepsToTakeAfterBankruptcy.aspx
http://www.bankruptcyaction.com/rebuildingcredit.htm
http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BounceBackFastAfterBankruptcy.aspx
After experiencing bankruptcy, the best way to rebuild your credit score is to pay your bills punctually. Your bankruptcy mark stays on your credit report for ten years, so you should think of having a responsible credit practice in paying your bills on time. It will be a great help in improving your credit history.
ReplyDeleteGoing bankrupt is really hard, but the real challenge starts after you have gone through to it. Self-control is really important. This is the time when you really need to prove to others and to yourself that you really learned your lessons before. If you conquer that, then you have really bounced back!
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