Rebuilding your credit after a bankruptcy

On Behalf of | Jul 2, 2020 | personal bankruptcy |

Individuals and couples alike might struggle with the decision to finally file for bankruptcy. While this decision might represent significant stress relief, there is still work to be done in the future.

Depending on your filing and your specific financial situation, you can almost certainly take steps to begin rebuilding your credit strength as soon as you can. Here are some tips to guide your financial journey.

  • Monitor your credit closely: Through the use of frequent credit reports and diligent examination you can identify errant items. From charge cards that should have been closed, to lines of credit that were paid off but not removed, watching your credit can prevent devastating errors.
  • Consider a secured credit card or a retail charge card: Building credit through the use of a department store card or secured credit card can help control debt as these items typically have a lower spending limit.
  • Avoid past mistakes: While this can mean numerous things, it is wise to consider what happened in the past and the steps that can be taken to avoid repeating the troubles. This could mean something as simple as building and keeping to a budget. It could also mean building savings to protect against emergencies.

Financial difficulties can come in many forms. From job loss to divorce to medical emergencies, it can be almost impossible to plan ahead. It is wise, however, to look to the guidance of an experienced bankruptcy attorney and work toward creating savings, controlling spending and planning contingencies. While it is possible to file for bankruptcy multiple times based on certain requirements, most people will likely try to avoid future financial trouble.