Your Financial Fresh Start Guide To Bankruptcy
Almost no one declares bankruptcy on a whim, but after many sleepless nights and worrying you may have finally realized that there is no other way to get control of your financial situation. Once you have submitted your federal chapter 7 filing, you are now on your way to a second chance to do better and make more educated and wise financial decisions. To make sure that you make the most of the second chance that this filing has provided for you, read on for a guide to getting back on track and preventing mistakes after your bankruptcy is final.
What happened? While you may be pretty good at beating yourself up over your bad financial situation at this point, you should realize that you are not alone and that you can learn from your mistakes. To do that, you must understand what went wrong and how to make sure it doesn't happen again. The required bankruptcy classes on budgeting should only be the beginning of your financial education. Learn all you can about using credit wisely, putting money away for emergencies, making and sticking to a budget and more.
Watch the score. It can be difficult to take a look at your credit after a federal filing, but you should get used to looking at your credit report and score every few weeks. Check to make sure that any creditors listed on your bankruptcy are not appearing as current or past due, and check for charge-offs and collection activities on bankruptcy debts as well. If you find any errors, report them immediately to all three major credit bureaus.
Don't jump at new credit offers. Using credit wisely will be a major part of your financial rehabilitation, but don't just begin to apply for every offer that appears in your mailbox. Read the fine print carefully and know that there is a special sector of creditors that prey on post-bankruptcy consumers that may be eager to get credit. Look for large "membership" fees, outrageous interest rates and other fees and charges. Consider, as well, that every time you apply for credit it will reduce your credit score.
Look for help online. You may be heartened and encouraged to "meet" like-minded people online. Forums like creditboards.com offer uplifting stories of people who've had to declare bankruptcy, been sued by collection agencies, owe Uncle Sam, and more. If these people can raise their scores and get an auto loan or a mortgage after a bankruptcy, you can too.
You can begin the journey toward a better financial future by discussing your financial situation with a bankruptcy attorney today. To learn more, contact an attorney like Greg Dunn Bankruptcy Attorney.