Filing for bankruptcy can be devastating for you and your family. It can ruin your good credit that you have worked have worked so hard to establish. However, not all is lost if you have to file for bankruptcy. There are steps you can take to help repair your credit and financial reputation after filing for bankruptcy. I will discuss some of these steps in further detail in this article.
Examine your credit report for accuracy
After you file for bankruptcy, you should review your credit report to make sure than everything on your report is accurate. This gives you somewhere to start on the road to recovering your credit.
Establish a budget
When trying to recover from bankruptcy, you need to set a budget and live within your means. You do not need to have credit cards and max them out, you do not have to have that nice fancy car. Even though you may be able to afford these types of things, know your limits and live within your means.
Pay your bills
This should go without saying, but it may be the reason why you filed for bankruptcy in the first place. If you want to repair your credit, then it is necessary that you pay your bills on time, every time. If you do not pay your bills in a timely manner, then you will only delay the recovery process.
Apply for lines of credit
If you want to establish better credit history, then you are going to need some open lines of credit. However, you should approach this with great caution. Some banks allow you to get a secured credit card. What that is, is a credit card where your bank holds a certain amount of money and issues you a credit card from the limit based on the amount of money on hold. This is a good way to establish your credit because a secured credit card still acts, in the eyes of the credit bureaus, as a real credit card.
Keep your current credit cards
As I said, you need open lines of credit in order to establish good credit history. You should keep the credit cards, and any other open lines of credit, open and continue to make timely payments on these accounts.
As I said, these are just some of the steps that you can take to reestablish your credit history. If you need more information on recovering from bankruptcy, please contact Kirkpatrick & Associates for more information.