5 Steps To Get Back On Your Financial Feet After Bankruptcy

5 Steps To Get Back On Your Financial Feet 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