Many worry about what their life will be like after
bankruptcy. It actually won’t be as bad
as you think, if you take the right steps after you file. Some of the things you can do to improve your
life after bankruptcy include:
Review Your Budget
Sit down and review what you spend each month. Create a budget you can work with and stick
with it. Try to eliminate unnecessary expenses
so that you can save money for future emergencies. Some of the expenses you may want to consider
excluding include: coffee (Starbucks), eating out, cable TV and your land-line
phone service.
Pull Your Credit
Report Before You File Bankruptcy And After Bankruptcy
Pull your credit report before bankruptcy and make sure all
your bad debts are disclosed in your bankruptcy schedules and discharged. After discharge, pull your credit report
again and make sure the creditors you discharged are no longer reporting that
you still owe them money. These errors can really hurt your credit score. If they continue to incorrectly report to the
bureaus after bankruptcy, seek the guidance of an attorney who can get the
errors deleted.
Consider Reaffirming
Debts You Need
If you need your car and plan to continue to make your car
loan payments after bankruptcy, you may want to consider entering into a
reaffirmation agreement with the finance company. A reaffirmation agreement
basically restores your obligation to pay the debt and excludes the debt from
your bankruptcy discharge. If you sign
one, the lender may then be less likely to report to the credit bureaus that
you included the debt in your bankruptcy.
Then make sure you pay the loan on time each month after bankruptcy. When it comes to signing reaffirmation agreements,
always seek the advice of a bankruptcy attorney, as the decision to sign or not
sign can give rise to serious consequences.
Apply For A Secured
Credit Card After Bankruptcy
Using these credit cards will help you improve your credit
score after bankruptcy. Often you are
required to put money down as collateral. If you don’t pay your credit card
bill, the creditor can take the money you deposited and use it to off-set what
you owe. As you use the card and pay it
off on time, your credit limit should grow. As your credit report starts to
reflect you can manage this credit card, your credit score will improve and other
credit card companies will begin to send you card applications.
Avoid Sub-prime
lenders
Avoid payday loans and debts with sub-prime lenders, as
these tend to hurt your credit score.
Don’t Be Negative
Look at bankruptcy as an opportunity. You have just wiped-out your debt and have a
clean slate. View each of the steps
laid-out in this article as springboards to getting your life back on
track.
At Sapinski Law Office, S.C. we are very committed to helping
our clients get their lives back on track after bankruptcy. We even offer free credit restoration to
those who file bankruptcy through our office.
We want to see you get a real fresh start! To learn more call us today at #888-782-9423.
