Six Steps To Take After A Bankruptcy Case
You might be wondering what your life will be like after you are finished with a bankruptcy case and receive your discharge. Maybe you have already filed or maybe you are considering filing, but are afraid you will have your credit ruined forever. Well, after helping 20,000 families file for bankruptcy relief over the last 15 years, I can tell you that it is not the bankruptcy that ruins your credit, but what you do after your case is completed that will hurt you. Because of that, I wanted to give you some tips to make sure you get the fresh start you are looking for and rebuild your credit in a responsible way.
Take these steps as soon as possible after you file a Chapter 7:
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Start to build your credit score by applying for a secured credit card. Don't go over 30% of your available credit limit each month and pay your balance in full. After a year, apply for a regular credit card.
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Order your credit reports from all three credit bureaus. Make sure the reports say your debts have been "discharged in bankruptcy."
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Obtain an installment loan as a way to rebuild credit, but prepare to pay a slightly higher interest rate. Search for a company that will give you the best rate, but don’t let every company run your credit report. Tell them up front you filed bankruptcy and ask them what interest rate you can likely get. Once you get one you are comfortable with, then officially apply and they will run your report.
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If you have student loans, pay more than the minimum required each month and set it up as an auto payment from your checking account.
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Don't co-sign for a loan with anyone. Their failure to repay the loan will hurt your credit.
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If you intend to keep your car, sign a reaffirmation agreement with your lender. This agreement is necessary to be filed with the Court before your discharge is entered. Your attorney should take care of getting this to you in plenty of time, but if you don’t receive it by your meeting of the creditors, you will want to ask about it.
Manage your finances wisely. The worst thing you can do is get right back into the same situation again. In most cases, filing bankruptcy will actually improve your credit score. Although you can file multiple bankruptcies, it would be disastrous to your credit rating. There are also time periods you must wait in many cases to be eligible for filing another bankruptcy case. The best advice is to consult with an experienced bankruptcy lawyer.
You deserve to have the correct information before you make decisions to change your financial future. St. Louis bankruptcy attorney James Brown with Castle Law Office has helped more than 20,000 families get the help they deserve and keep property they are entitled to keep and get the fresh start they so desparately need. If you want to find out more about your options, you need to check out the consumer guide "7 Critical Mistakes To Avoid The Dismissal Of Your Bankruptcy Case"
Missouri bankruptcy attorney and Illinois bankruptcy lawyer James Brown wrote and published this guide to make sure you have good, honest information about what bankruptcy can do for you and how to successfully get the help you need.
