Filing a Chapter 7 bankruptcy will allow you to gain financial freedom from debt, but it can be a challenge figuring out how you’re going to begin establishing a healthy credit profile again. Fortunately, although it will take some time and dedication, it is possible to get your finances back in order and repair your credit rating. The key is to start following some simple steps as soon as your bankruptcy is finalized.
The lawyers at Bueker Law Firm focus in the bankruptcy process. They have helped numerous Stuttgart, AR, residents achieve a debt-free life. Below, they explain a few things you can do to prevent future debt problems and restore your credit:
- Create & Stick to a Budget: The first thing you must do is create a budget that realistically fits within your monthly income. This will set boundaries on your spending and allow you to track exactly where your money is going. This is a good way to identify any unnecessary spending habits you have and cut back in those areas.
- Pay All Your Bills on Time: It’s crucial for your credit rating that you always pay your bills on time, regardless of how big or small they are. Even after your Chapter 7 bankruptcy, you will have bills you’re responsible for, which may include a mortgage payment, utility expenses, and a car loan. Set up reminders of when everything is due so you never have to worry about missing a payment.
- Rebuild Your Credit Wisely: In the months following your bankruptcy, you will begin to receive offers from creditors. While having a credit card is a great way to start rebuilding your credit, it’s essential to choose your new cards carefully. The offers you get won’t be great, so select the ones with the best terms, use it sparingly, and pay it off in full every month.
Going through a Chapter 7 bankruptcy can relieve you of your debt struggles and provide you with a fresh financial start. However, it’s important that you work hard to stay in control of your finances and credit to avoid finding yourself back in the same position. Contact Bueker Law Firm at (870) 673-1313 to schedule a meeting with a knowledgeable bankruptcy lawyer, or visit them online for more information.