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5 Steps To Get Back On Your Financial Feet After Bankruptcy

On Behalf of | Jun 4, 2018 | Life After Bankruptcy

Although there are many benefits of filing for bankruptcy, you can’t overlook the fact that this will change your life in a number of ways.

For example, a bankruptcy will remain on your credit report for a minimum of seven years. This can make it difficult to secure a loan during this time period.

Here are five steps you can take to regain your financial footing once the bankruptcy process is in the past:

  • Create a budget and stick to it: Creating a budget is a great start, but sticking with it is what matters most.
  • Use cash: In the past, you may have used credit cards to make purchases. Now that you’ve gone through bankruptcy, it’s time to turn your attention to the many benefits of a cash-based system.
  • Pay every bill on time: Regardless of what bill it may be, you need to pay on time. You don’t want to get into bad habits that could result in trouble once again.
  • Use a secured credit card: Dspite the fact that you want to rely heavily on a cash based system, the use of a secured credit card can help re-establish your credit and build your score.
  • Avoid big purchases. Even if you qualify to buy a home or car, it may be best to put this off for the time being as you become familiar with your finances after bankruptcy.

With so many benefits of Chapter 7 and Chapter 13 bankruptcy, there may come a time when you realize this is the best way to improve your finances. Once you take the first step, you should then begin to plan for life after bankruptcy.

Source: Bankrate, “10 ways to bounce back from bankruptcy,” accessed June 04, 2018