You understand filing bankruptcy could improve your financial health, but how do you maximize that possibility? Knowing which steps to take post-bankruptcy could put you on the path to success.
U.S. News & World Report offers tips for recovering after bankruptcy. Give yourself every chance of financial success.
Create a credit rebuilding strategy
Because bankruptcy may harm your credit score after you initially file, get proactive about rebuilding your credit. Rather than take out a loan, consider applying for a secured credit card. While you must put down a deposit, using these cards could help heal your credit. Creating a plan to gain control over your cash flow could also become part of your strategy.
Keep bankruptcy documents close
Rather than put your bankruptcy documents away, keep them close at hand. Perhaps you do not want them to serve as a reminder of your ordeal, but you may need to show a lender the paperwork. If creditors claim you still owe them money, your paperwork could offer the only way to get them off your back.
Get to know your bank
Your bank could have financial resources for bankers to help them improve their financial health. Ask about such services, and use them if you feel they could help. Another reason to build a relationship with your bank is so you have a better chance of receiving approval for a loan.
Trace your bankruptcy to the roots
Do you understand and acknowledge the financial missteps that brought you to bankruptcy? Perhaps your financial troubles started when you lost a job or made a major purchase without reading the fine print. Whatever the reason, learn what it was so you do not repeat it.
A new financial journey awaits after filing bankruptcy. With a post-filing plan, you may better navigate this chapter of your life.