Life after bankruptcy is about rebuilding your life…yes, your credit rating is shot and you might not be feeling so good about yourself, but don’t despair.
The good news is that your slate is wiped clean and with this fresh start, you can begin to re-establish credit as well as your finances. In fact, re-building your credit soon after your discharge is one of the most important things you can do.
Here are a few things you should do after bankruptcy.
Budget. Creating and sticking to a budget is one way to stay on financial track.
Save Money. You remember the old expression, “Cash is King”? When you have cash, you don’t need to use credit. That is why saving money is one of the most effective ways to keep you on the road to financial stability.
Obtain a “secured” credit card. A secured credit card is one where your credit limit is based upon the amount of money you deposit into a bank account securing that card. So for example, if you deposit $1,000, then typically, that $1,000 deposit becomes your credit limit. Generally, you must wait until at least one year after your discharge in order to qualify for a secured credit card.
And once you do get a secured credit card, it’s important to use it responsibly…translation: charge small amounts each month and repay those amounts as agreed.
Eventually, your bank may convert that secured card to a traditional credit card if you’ve demonstrated a history of paying on time and not carrying excessive balances.
Of course, there are some misconceptions of life after bankruptcy. One is that you will be unable to obtain a mortgage for at least 10 years. This is simply not true. Another is that you will be paying exremely high interest rates on car loans and the like. This is not necessarily true either. Many people have gotten car loans after bankruptcy at quite reasonable rates.
Call 480-755-8000 to speak with our Arizona bankruptcy attorney today for immediate help.