Life After Bankruptcy

Mayuri Baruah Jun 30, 2019
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Rebuilding your life after bankruptcy, including your savings, credit rating, and your financial and emotional well-being can seem tough. This story will provide some tips to help you overcome this challenge and get back on track.
Life after bankruptcy requires a lot of patience and planning. You need to manage and keep track of your every expense in order to recover from it. After bankruptcy, you may have to pay higher rates of interest, and getting a loan of any kind would be extremely difficult.
Financial institutions that do lend you money will charge exorbitant rates of interest. You may be unable to procure a credit at all for major purchases, such as cars or home.
A lot depends on the type of bankruptcy you file under Chapter 7; the effects of bankruptcy are likely to continue for ten years since the event. However, under Chapter 13, your credit report is invalidated after just seven years.
It is advised that you consult your attorney for details regarding your particular situation. Here are a few tips that will help you can get back to a good position, financially.

Keep Track of Your Credit Report

It is usual to find errors in a credit report. Go through all the details, and correct all the errors. Keep track of all the debts due, and those which have been cleared. Modify the credit report with the correct information.

Pay off your Current Bills

Pay your bills on time, as and when they come. It is very important to have your present credit record clear of any pending payments.

Financial Advisors

Take help from a financial advisor to chalk out a complete financial/retirement plan.

Save for a Rainy Day

Always keep appropriate cash reserves for unforeseen events. Find a proper insurance plan to protect your assets. Do not invest in anything that is not financially safe or secure.

Financial Literacy

You can always gather and read good books for personal financial advise.

Start Living a Productive Life

Get a job immediately, if you don't already have one.

Pay in Cash

Do not use credit cards for the items you purchase for your daily living. Pay in cash or with a debit card. Ensure that you pay its bills on time by cash.

Check Interest Options Annually

The older the bankruptcy discharge, the better the interest rate will be.
If you need a loan, review your loan interest options annually. This option is for those who have a record of making payments on time for their present outstanding debts.
Even after you follow these guidelines, it will take some time to regain your financial stability, but once you have corrected yourself, and are exercising good habits, then there is no reason for worry.