So, you’ve filed for bankruptcy.
Now what?
A lot of people who file for bankruptcy put so much time and energy into the actual act of filing for bankruptcy that, once they’ve filed, they’re just not sure what to do. It’s hard to plan for life after you’ve filed, because it can be hard to imagine what that life will be like.
Trim your lifestyle
To avoid getting into a hole of debt again, you’ll need to make changes to your everyday lifestyle. Live simply, and cut out things that are unnecessary, especially as you are getting back on your feet. Filing for bankruptcy will stay on your credit report for up to ten years, which means your life will look differently until that has dropped off. Make sure you are careful and don’t spend excess money.
Rebuild your credit
This is hard, especially after filing for bankruptcy. In order to rebuild your life, you’ll need to rebuild your credit. The easiest way to do this, is to make sure that you make all our your payments(rent, mortgage, utilities, etc) in a timely manner. Making all of your payments on time, means that your credit is improving and your score is increasing. After filing, your rates for things like insurance may climb, but these things will get better the more time passes from the time you file.
After 6 months, get a new credit card
We don’t recommend getting a new credit card for at least 6 months after filing for bankruptcy. And when you do, you’ll have to apply for a secured credit card with a low credit limit and a high interest rate. That’s okay, though. Having a credit card that you maintain, increases your credit score. Make sure that you always pay off your credit card in full every single month, to improve your score, as well as keep you out of debt and out of trouble. You’ll need to use this card occasionally, for it to count towards rebuilding your credit, but use it sparingly, and always pay it off immediately.
Be positive
One of the most important parts of rebuilding your life after bankruptcy, is remaining positive. Work hard, pay your bills, build a savings account, and show everyone that you’re able to get your life back on track. With good behavior, you’ll prove to potential lenders that you are gaining financial independence, and you won’t find yourself in a pit of debt ever again.