What to Do After Filing Bankruptcy
Many file bankruptcy as a last resort to freeing themselves from their debt. Of course after you file you are attempting to start over financially and you have to rebuild your credit from the bottom. Filing under chapter 7 is the form of bankruptcy that in a way allows you a fresh start, and although this word usually carries a black mark, there is no shame in recognizing you have a problem, and doing what you can do get on the right path.When you have completed the bankruptcy process and are ready to start over the first thing you should do is obtain a copy of your credit report, you can get this free online, and make sure that all of your previous accounts have been marked "discharged." You will need to start reestablishing your credit as soon as possible, but after two years you can finally start receiving going interest rates, before then they will be sky high.
It will probably be near impossible to be approved for an unsecured card, which is the typical card, that people with better credit are offered. Apply for an secured credit card, which a bank will usually allow you, your credit card is tied to a savings account and your balance on the card is the balance of your account, and make sure that your payments are being reported to a credit agencies.
If you own a vehicle that you are making payments on you will need to sign reaffirmation agreement, this will allow the lender to see you in a better light, since you are letting them know that you are planning on keeping the vehicle and paying it off. It is also recommended to never co-sign a loan with anyone, or carry balances on your credit cards, in case of emergencies, if you find yourself being unable to not carry balances, get rid of the card.
It comes down to learning from your mistakes and not allowing yourself to fall into the same behavior that allowed you to become bankrupt in the first place.
Contributing National Payday Staff Writer
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