The bankruptcy process is over. So, what happens now? Creditors haven’t been calling for a while and that big pile of unpaid bills is gone.
Establish a Budget and Stick to it
- Whatever the cause of the bankruptcy, whether it was medical bills, divorce, or zero-interest credit cards, it’s time to match money in and money out.
- The first step should be setting aside a certain amount every pay period for an emergency fund. Set a goal. For most people, $3,000 is usually enough to cover an unexpected expense.
- Have everyone in the family carry a small notebook for a week or two (or use an application to track expenses) and list every penny they spend. Those small amounts add up.
- It’s likely that most of the “fat” was eliminated before the bankruptcy even started; but take a second look.
Start to Rebuild Credit by Paying all Bills on Time
- Go online and arrange to have your monthly bills paid automatically from the checking account. Paying bills on time is the most important step to help reestablish a good credit rating, according to bankruptcy attorneys in St. Charles, MO.
Don’t get a new Unsecured Credit Card
Very soon, the mailbox will be overflowing with offers for low-balance credit cards. Most of these cards have high fees attached (activation fees, membership fees, etc.). This type of card didn’t do you any favors before and it won’t now.
Get one Secured Credit Card
Use it to pay one bill every month, on time.
A Conventional Mortgage or car loan will be Possible, but not yet
Many people find that after two or three years have passed, they can obtain a new loan for a major purchase. However, the interest rate will be higher than it would be for someone who never filed for bankruptcy.
The key to Establishing a Good Credit Rating
There are a lot of negatives on the credit report now. Those bad mentions must be replaced with positive reports. As time passes, the negative items will become less important, especially when all of the recent mentions are positive.
If you have been considering bankruptcy, schedule a no-obligation consultation with Van Dillen & Flood, P.C. to discuss your options. This knowledgeable bankruptcy attorney in St. Charles, MO, will protect your rights and guide you through the legal system. Find out from this bankruptcy attorney in St. Charles, MO, if bankruptcy would help you to get your life back on track.
