bankruptcyThere are times when bankruptcy is the most responsible decision, despite the stigma and financial repercussions attached to such a claim. While it may seem at the time that bankruptcy is the end of your financial life, it can actually be the beginning of a new credit journey. Of course, turning bankruptcy into a new beginning takes time and planning. With some professional tips, anyone can begin slowly rebuilding their credit without help from a third party.

Avoid Unsecured Debt

Potential lenders like to target those who have just filed a claim, whether for Chapter 7 Discharge or Chapter 13 Reorganization, because they are candidates with finances already under control. While it may be tempting to get a credit card immediately to start rebuilding credit, the offers are seldom in favor of the one Instead, the creditors use the perceived vulnerable state of someone who has just gone through bankruptcy to offer credit cards, personal loans and high-interest financing for vehicles, all on less favorable terms.

Start Budgeting

Many people make the mistake of creating a best-case scenario budget rather than following a realistic budget. To achieve a more realistic budget, track your spending for three months and see what you spend on. When looking at the expenses, use a critical eye and decide what can be cut and what cannot be reduced. Based on those findings, create a budget you can truthfully follow without tapping your resources.

Check Your Credit Report

After successfully filing for bankruptcy, it’s important to make sure your credit report has received the clean slate you’ve worked toward. Of course, this won’t be immediately reflected. However, it should be reported soon after. Further, you should be checking all other aspects of your credit report are also accurate. When applying for financing or even a new apartment, your credit score will be a representation of you as a borrower. Having the best information possible will help rebuild your credit by opening up more options in financing.

When working with a lawyer for a bankruptcy claim, they can help you craft a plan for afterward. Contact us today if you need a reputable lawyer for your bankruptcy needs.

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