After The Filing: Post Bankruptcy Moves To Make

Posted on: 25 June 2018

Once you file chapter 7 bankruptcy, you may be both relieved and anxious. Relieved because you no longer have that debt burden on your back and anxious about the way the filing might affect your ability to get credit in the future. Read on for some smart moves to make and what to know about the post-bankruptcy period.

Identify the Causes

It's all too easy to lay the blame for your financial problems on unreasonable creditors or expensive medical bills, but to avoid a repeat, you have to take responsibility for your own actions. Try to focus on the steps you should have taken to avoid the mess you found yourself in and make plans to ensure it doesn't happen in the future. For example, if you found yourself paying your regular monthly bills with your credit cards, you might need to examine ways to cut your expenses by sizing down your living situation, dropping some recreation and entertainment obligations, and taking on a side gig to help ensure that you can cover your budget without using credit.

Keep a Close Watch on Your Credit

Your credit report is a snapshot of your debt situation, and attention in this area will pay off by ensuring that mistakes don't go uncorrected. While the federal filing is an obvious black mark, that does not mean that credit offers will not be forthcoming. and you will want to gradually and wisely rebuild your creditworthiness. Once your bankruptcy is final, take a close look at the debts listed and check them against your bankruptcy matrix. All accounts should show as closed, and they should no longer be impacting your credit score. Be sure you dispute problems quickly by alerting all three major credit reporting bureaus about the problem.

Acquire New Credit Carefully

You may be shocked when you begin getting credit card offers in the mail after your bankruptcy is finalized, but you might want to examine these offers closely before jumping at the chance to begin again. Many of these post-bankruptcy credit offers are based on the public reporting of your bankruptcy and are aimed at those with bad credit. This can mean high membership fees and other fees and punitive interest rates. Know what you are applying for by reading the fine print on the back of the offer letters. You might be surprised, but the ones that require a monetary deposit are often great ways to start rebuilding your credit as long as they are otherwise good creditors.

Speak to a bankruptcy lawyer to learn more.