A lot of time, thought, and attention goes into deciding if filing for bankruptcy is right for you and your family. When you feel confident that you’ve made the right decision with the help of a bankruptcy attorney in Columbus, Ohio, a weight is taken off of your shoulders and you likely feel like you can finally move on with your life.
Unfortunately, when you declare bankruptcy, your work is far from over. Life after bankruptcy is often more challenging than the actual act of bankruptcy, but if you want to enjoy a rich financial future, it’s absolutely necessary that you build a new financial foundation after the paperwork is filed.
Create a budget and make payments on time
The very best thing you can do when embarking on your new life after bankruptcy is to make a commitment to creating a budget and making payments on time.
By creating and sticking with a budget, you can ensure that you have the money you need to make monthly payments. A good budget plan includes setting aside a little extra money so that an emergency doesn’t ruin everything you’ve worked so hard to rebuild.
A budget also enables you to make payments on time, which can positively affect your credit score.
Work to re-establish your credit
Filing for bankruptcy affects your credit. Depending on your score prior to filing, you may have a lot of work ahead of you to rebuild, or you may find that your score is more easily recoverable. Either way, without good credit, you may be denied for future car loans, home mortgages, financial aid to continue your education, and more. That’s why life after bankruptcy must include re-establishing your credit.
There are many ways to work on re-establishing your credit, so you have some options when it comes to choosing the method that’s right for you.
If you’re having a hard time obtaining a new credit card, you should look for a secured card. Resources like www.creditcards.com can help you find the right card for you. A few considerations: 1) Don’t borrow more than you can pay back in one billing cycle. Pay on time (and in full on the balance if possible). Do not create a joint account (where you and another person are both responsible to pay for charges).
The key is paying all debts on time when re-building and maintaining your credit score.
Keep an eye on your credit score
Life after bankruptcy includes keeping a close eye on your credit score. After all, rebuilding your credit score is ultimately what you’re working up to.
A free site www.annualcreditreport.com allows you to pull one report for free every year. There are 3 reports on the site. Therefore, if you pull one of the three reports, you can obtain and update report every 4 months for free.
Work through your credit report, eliminating debts that weren’t discharged and making timely payments one at a time. You should also be mindful of possible errors on your credit report. Don’t be afraid to dispute inaccurate items. Getting them removed could have a huge effect on your credit score.
Whether you’re trying to decide if bankruptcy is right for you, or you’re trying to get back your life after bankruptcy, you shouldn’t go it alone. Our skilled bankruptcy attorney in Columbus, Ohio is here to help. Contact us today for a free case evaluation and we can help you get your life back on track.