Millions of Americans have faced or are facing bankruptcy. Though it may not seem like it, there is life afterwards! Here is everything you need to know to bounce back quickly.
As delinquencies and foreclosures rise, millions of people are struggling daily to stay afloat. With no where to turn to, families everywhere are running out of options.
The only alternative for some may be bankruptcy.
Bankruptcy leaves both financial and emotional scars that few can understand without having witnessed it themselves. Still, it isnt the end of the road but rather a new beginning.
Here are some steps you can take to regain your life faster than you ever dreamed!
The most important thing to keep in mind is that you can not let the bankruptcy define who you are!
Stop beating yourself up! Its ok to vow that you will never go through anything like that again, but let it go. Realize that that was a specific period of your life and not who you are. The past is no reflection of your future. Its time for you to move on.
Second, this may be a good time for you to consider multiple streams of income.
Even if you have a great job, one of the best ways to secure your families financial future is to derive your income from more than one source. Now that most of your bills have been eliminated, why not invest in yourself and learn internet marketing, or some other skill that could bring in a few hundred extra dollars a month? It beats blowing your money eating out and in the long run will make you feel much better about yourself!
Regaining your financial life is another key area of importance. One of the first things you will need to do is open a bank account. (Assuming you do not currently have one.) You might try visiting a credit union or grocery store bank and establishing a relationship with the branch manager. Explain what happened and find out what you will need to do to get another account. It may not happen overnight, but if you do what is necessary, you should be able to open an account fairly quickly.
Next, you will want to reestablish your credit. This step might seem counterintuitive. After all, wasnt it too much credit that got you into this mess in the first place?
The only way to improve your credit score is to use credit. You have probably already learned that having a low or no credit score is very expensive.
Right after you have filed bankruptcy, you may think that it will be impossible to get new credit. Luckily, there are a couple of options.
The best option is to go to your bank or credit union and buy a certificate of deposit for a set amount, say $1,000. Then you will want to take out a secured loan against this CD. The bank is willing to give you the loan, because if you default they have the CD as collateral. They cant lose and you win by establishing a payment history on a bank loan!
Another good option is opening a secured credit card. You may have already gotten a few offers in the mail! Secured cards work in the same way a CD loan does. The lender will require you to make a deposit and issue you a credit line against it.
It is important that you choose your credit card company wisely. You dont want to pay an application fee and you are looking for a low annual fee. Additionally, you want a card that will convert to an unsecured credit card at some point in the future, typically after 18-24 months of on time payments.
Now that youve reestablished your credit, make sure you manage it wisely! Make all of your payments on time as lenders are likely to be less forgiving of minor slips ups than they would have been before the bankruptcy.
Monitoring your credit regularly is very important.
You need to make sure that lenders are not reporting accounts as open and delinquent that were included in your bankruptcy. Unfortunately, this happens quite often!
The best thing to do is to have a form letter on hand to send to anyone who contacts you. Make sure it includes your information, the case number and your attorneys contact information. That way, it is easy to respond and nothing falls through the cracks.
By following these steps, you can bounce back from bankruptcy in no time! In several years, you will even be able to own a home again!
Tags: bankruptcy, bankruptcy chapter 7, bankruptcy discharge, bankruptcy recovery, Credit, credit repair, credit repair tips, life after bankruptcy, Personal Bankruptcy