How to recover from Bankruptcy?
If we have been through bankruptcy then maximum of us think that our credit is shattered and we will not be able to regain it, but not that all times, you can regain credit through some unique ways. After filing bankruptcy your goal or motive should be to start establishing credit and straighten things out. Find 10 ways to recover from bankruptcy below:
- Find the causes of the bankruptcy
- Prepare a suitable budget
- Pay your bills on time
- Check your credit report
- Use a single credit card
- Re-establish credit steadily
- Avoiding unfair deals
- Don’t give up hopes
- Beware of credit repair scams
- Acquire positive approach
1) Find the causes of the bankruptcy: It is really important to find the cause of filing bankruptcy. You need the find the problem from the root and to remove it. Think about new type of employment or some specific budget, so that you find yourself in different position after five years from now.
2) Prepare a suitable budget: One of the most important things in life is to have control over it. And to control your lifestyle and spending attitude, you need to make a suitable budget. Just track six months of your expenses and you will get an idea about your expenses and income. Now you need to make a balance between them to create a realistic budget for you. It is the first step of saving which will help you make funds for future needs.
3) Pay your bills on time: It is necessary to pay all your bills on time if you want to gain good credit after bankruptcy. Bills include small ones like phone and power company bills. Dealings with your bank are also important. Your credit score gets affected on bouncing checks, overdrafts, bank fees etc.
4) Check your credit report: You have got a clean page after filing bankruptcy. Now you have to make sure that you maintain a good and healthy credit report. That’s why it is necessary to check credit report on regular basis to make it errorless. Some of us are scared about numbers and don’t want to go thorough it but for your benefit it is necessary to take control of it.
5) Use a single credit card: One of the best ways to re-establish good credit is using a single credit card and make a good payment record. Creating lots of credit card accounts can’t help your credit.
6) Re-establish credit steadily: Using one or two credit cards and paying them off in full each time helps a lot to your credit score. It should be good within two years if you maintain this behavior. Another thing which will make people who filed for bankruptcy happy is that some lenders prefer to provide loan to people who have filed for bankruptcy in the recent times. The reason behind their thought is that these people will not be able to file bankruptcy again for the next 8 years and they will be liable to pay the new debts.
7) Avoiding unfair deals: This is another area you need to avoid. You will find companies will offer loans with high rate of interest after knowing your situation that you have filed for bankruptcy. You will probably be happy to find this credit but wait, this high rate of interest may not suit your situation, hold for the better offer or deal.
8 ) Don’t give up hopes: Most of us think that after filing for bankruptcy no lenders will agree to approve a loan to us. You need the right lenders to approach. Do some research to find them. Another thing is that of human touch. If you can approach to the lenders properly explaining about the situation and the reasons of filing bankruptcy then they may approve your loan.
9) Beware of credit repair scams: Move yourself away from anyone offering or promises to “repair” or “fix” your credit after bankruptcy. Repairing credit overnight is the next word to impossible. It can only be done by you and with no fee.
10) Acquire positive approach: After filing for bankruptcy you may think that you are alone, you can’t disclose your financial situation to anyone. But think positively because you will find many of your friends and neighbors have also filed it.