Many people are hesitant to file for Chapter 7 or Chapter 13 bankruptcy because they are scared about their financial standing after the case. However, working toward more solid financial footing is much better than collapsing under the weight of debt you can’t control. Follow these tips to help you get back on more solid financial ground more quickly.
Open a Secured Credit Card
One of the best ways to get back on track after a bankruptcy is to jump back into the pool. However, you aren’t likely to succeed in getting a typical credit card right after the bankruptcy. Instead, you will need to use a secured card that requires you to add money to the card before you make a purchase instead of paying for purchases afterward. This type of card reports to the credit bureaus, helping you improve your credit score.
Check Your Credit Reports
Just because something was discharged in your bankruptcy doesn’t mean the creditor handled it correctly. Some of them don’t report the closed account or discharged amount properly, which can lead to problems with your credit score, even after it should have improved. About a month or two after the discharge, check your credit report with all three bureaus and make sure everything is correct. If it isn’t, dispute the incorrect information and get it fixed.
Set a Budget
The most important thing you can do after your bankruptcy is to learn to live within your means. Take a good look at your income and your expenses and create a budget. Cut out anything you can’t afford. You may want to consider talking to a financial consultant about your budget, especially if you are having trouble with it. Once you have a budget in place, make sure you follow it.
Recovering from a bankruptcy in Kansas City can seem like a long, tedious process. While it will take years for it to be completely removed from your record, you can take certain steps to start improving your credit score right away. The more you work at your credit score, the faster it will recover to put you on solid financial ground again.
If you are considering filing for bankruptcy, contact us. We can help you get started on the process, the right way.