Posted on: 4 September 2017
The decision to declare bankruptcy can be a tough one, and it's easy to see why. You probably know that your ability to use credit will be affected for many years to come, but you may be uncertain about other negative effects of a chapter 7 bankruptcy filing. It could help you to have a better understanding of how to deal with your financial situation after a bankruptcy, so read on.
Know Why: If you fail to examine the reasons why your financial situation got so out of hand, you may only repeat those mistakes again in the future. Bad financial planning and knowledge are totally fixable, but only if you make the effort. Learn how to budget, how to put aside money for those rainy days and how to use credit in a better way, so that you can take full advantage of the fresh start that this bankruptcy will provide.
Check That Credit: Steel yourself; the Federal Bankruptcy Court filing will show up on your credit report as soon as it becomes final. Tell yourself, however, that it is not the end of the world. In the meantime, monitor your credit report on a regular basis and make sure that all the debts you listed on your bankruptcy matrix are not showing up as past due or current. Report issues immediately to the three main credit bureaus.
Don't Bite: You may be surprised at how quickly you begin to get offers for more credit cards, but that is actually no coincidence. Many creditors monitor federal filings and take advantage of those with less-than-perfect credit by offering them cards with high membership dues, high interest rates, punitive late fees and worse. One of the best ways to rebuild your credit is using a card that requires you to deposit some funds until you show your creditworthiness.
Watch Your Number: A federal filing can plummet your credit score, but it will rise with good credit decisions and with the passing of time. Build up your credit slowly and steadily and beware of having too much open credit or using too much of what you have. Use a free credit score checker like Credit Karma or Credit.com to keep tabs on it.
You may be shocked at how much better you feel to rid yourself of that old debt and old bad financial habits, so speak to an attorney, such as Thomas K Mast, as soon as possible and get started on a better future.Share