Filing Chapter 7 or Chapter 13 bankruptcy paperwork usually means that you should start bracing yourself for life after bankruptcy. You need to understand that the recovery process is difficult, and is bound to take a very long time. Liquidating some of your assets is just one of the many issues that must be dealt with, first. So you need to prioritize and decide on which assets are going to be liquidated and which ones are going to remain.
The hard truth for you to swallow is that you will probably not be able to get a loan for the next couple of years, as a bankruptcy on one’s credit report makes for a poor loan candidate. You have many needs and you cannot seem to find a way through which you will be able to obtain the cash necessary to address these needs.
Another thing you need to prioritize is regaining a better credit score; getting a credit dispute for inaccurate items on your credit report can help you salvage whatever is left of your credit score. By now, all the types of lenders – be it a lending institution, shylock or even payday loans sites – will view you as a bad risk since you have taken a step to legally write off some of your past debts. This means that you will not be able to obtain a loan or a credit card for a certain period of time. That is not all, supposing you manage to get a loan or a credit card, the associated interest rates and fees attached to such facilities will be massive.
As the consequences of Chapter 7 or Chapter 13, bankruptcy continues to hit you hard, and you try to figure out a way through which you will be able to take back control of your finances. You tell yourself that you will do what it takes to adopt a debt-free lifestyle, even if it means cutting the spending on some of your basic needs.
As you seek to improve your credit score, access your equifax credit report, and swear to yourself that you will only seek help from the few remaining trusted friends (only if you need the funds urgently). You also seek to settle your bills (on time) to avoid unnecessary embarrassment. You also save up for the end result which is living a life free of debt.
In order for you to realize some of the goals you aim to fulfill in this phase of your life, you decide to get a job. Moreover, you find a good and affordable place to live. You strive to maintain the job, and also the residential area – since you want to show creditors how reliable you are. A history of changing jobs and residential places will only show the creditors you are scheming and therefore unreliable.
However, as you take the necessary steps needed in rebuilding your (already damaged) credit, you encounter employers and landlords who require you to produce documents revealing your credit score. You may, however, request help from your few trusted friends, to help you land a job, however unstable it may be; since right now your priority is to meet your most urgent pressing needs. You may also choose to live in your friend’s servant quarters, if you fail to find a place to rent.
Another important step to take that will help you improve your credit score will be to maintain a bank balance. It is very fortunate that a majority of banks have come up with programs meant to offer a second chance to people who have already filed for bankruptcy. You may, therefore, approach your preferred bank branch to proceed with letting them take custody of your savings. It will be important to maintain a positive balance in the account at all times, as this will show your employers and creditors that you’re liquid.
You will also need to compose realistic budgets from time to time to help you become extra vigilant with your finances. A well-formulated budget will act as a spending plan to help you manage your cash flow. It will also help prevent you from getting into unnecessary debt; access your experian credit report to help you manage your debt, if it’s too overwhelming. Getting a secured credit card is also another good way of ensuring you improve your credit score; be sure to check whether it is accessible to people who have filed for bankruptcy from your local lending institutions.
These are just some of the few sure ways that will help you as you progress through life – after filing for bankruptcy. Making wise use of your income and credit are indeed the surest ways of rebuilding your credit rating, and also assisting you to get back to financial stability, again. The bottom line is that if you will manage to prove to lending institutions (and employers) that your life is in order, then you will be able to weather the storm associated with life after bankruptcy.