The decision to file bankruptcy was difficult, but you likely had very little choice. Once your financial situation gets out of hand, it's like a domino effect of mounting penalties, interest and misery. Part of the big decision is about the after-effects of such a move. Will you ever be able to get credit again? The answer to this question is "yes", so read on to learn more about recovering from your chapter 7 bankruptcy.
How Did This Happen? It's going to be difficult to learn from your situation without an understanding of how you got to the point of having to declare bankruptcy. Go a bit deeper with your evaluation and avoid assigning excuses, such as a divorce or high medical bills. Those things can happen to anyone at any time, but the difference is savings and planning for emergencies. Make plans to set aside money for savings, and follow up on it. Take a look at any bad financial habits, and take action to change your ways. Take responsibility for your situation, and ensure that you never have to take this action again.
Your Fresh Credit Picture: Start paying close attention to your credit reports, since you want to increase your credit worthiness and raise your score. That federal chapter 7 filing will remain a black mark for at least 10 years, but that should not stop you from getting auto loans, credit cards and even a mortgage. Get in the habit of checking the report on a monthly basis for errors, and report them to all three main credit bureaus (Equifax, Experian and Transunion). Take note: you should not be seeing any of the creditors you listed on your bankruptcy matrix showing as open accounts on your credit report. Take action if you do.
Don't Fall For Bad Credit Offers: You should be ready for your mailbox to get filled with offers for loans and credit cards after your bankruptcy is final. These creditors monitor the federal filings (which are public record) and prey on those who think they cannot get credit again. Be sure to read all the fine print and know what you are signing up for with these offers. Some of them have high "membership" dues, high interest rates and high penalties. A great way to begin rebuilding your credit is to go with cards that offer reasonable interest rates, low or no service charges and require you to deposit funds initially. Don't get taken advantage of in your efforts to rebuild your credit.
Contact a bankruptcy attorney for more help.
Share16 January 2018
Hello, my name is Neil Gamford. Welcome to my site about bankruptcy proceedings. After my divorce, I was left near penniless and without a place to stay. I was paying all of my income to alimony and my remaining debts. Although I had a solid payment plan in place, it was getting difficult to cover my financial obligations without a home. Luckily, I met with a bankruptcy attorney, who helped me find a way to discharge my debts and start over. I hope to share the information I learned throughout that process with you through this site. Please feel free to visit anytime.
