After you file bankruptcy and receive your discharge, how should you begin the credit rebuilding process? Attorneys will tell you there are simple-yet-important actions that put you on the road to financial restoration. The process takes time, but these following valuable steps help you achieve your goal more quickly.
Steps to Establish Post-Bankruptcy Credit
Create a Practical Budget
If you did not have a budget before filing bankruptcy, making one and sticking to it after your discharge is a great way to control your spending. Now that you have little or no debt, you have more funds available to cover your necessary expenses. Budget an amount each week or month for a savings account, and also create a fund of at least $250 for emergencies.
Seek a Secured Credit Card
If you received a Chapter 7 bankruptcy discharge, creditors know you cannot receive another one for eight years. That fact can make you a better credit risk than someone who has not filed and is burdened with debt. Ask your bank or credit union to issue a credit card secured by your savings account. Use it for small purchases and pay it off in full monthly.
Pay All Bills on Time
Making your rent, utilities, and credit card payments on time shows your creditors you are managing your money responsibly. Talk to your bankruptcy attorney about getting free copies of your credit reports and credit score when you receive your discharge, and get them again a year later. With these steps you should see improvement, and likely qualify for an unsecured credit card.
From their offices in Dothan, AL, attorney Rafael Gil III and his seasoned legal team at The Gil Law Firm offer vigorous representation to clients burdened with bills and debt. Whether you want to know how to file bankruptcy in Alabama, Georgia, or Florida, count on receiving personalized attention from these seasoned and compassionate legal professionals. Learn more about Chapter 7 bankruptcy and their other services online, and for your confidential attorney consultation, call (334) 673-0100.