At the Grafstein & Arcaro, LLC in Connecticut, we help people file and successfully negotiate their way through bankruptcy. Once you begin your post-bankruptcy life, you should do several things to ensure that it will be far better than the one that led to your financial problems.
One thing you may be most eager to do is reestablish your credit. Before getting a new credit card, however, Credit.com recommends you do four other things first.
1. Keep your bankruptcy paperwork
Do not trash your bankruptcy paperwork, particularly your bankruptcy petition, notice of filing and discharge order. You may need them in the future. Gather up all your paperwork, put it in a file folder and store the folder in a safe place. You also may wish to scan the documents into a computer file so you have electronic copies as well as hard copies.
2. Obtain your credit reports
Wait for about three months after your bankruptcy discharge and then get the free credit report you are entitled to from each of the three main credit reporting agencies. Check them to make sure none of your discharged debts show up. Also make sure that no collection agency now has one of your discharged accounts.
3. Begin budgeting
Budgeting is not fun, but it will serve you well in your post-bankruptcy life. Why? Because once you determine and list the amount you pay each month for each bill, you know that the total is the amount your monthly income must cover. Be sure to include monthly segments of the bills you pay on a bimonthly, quarterly, semiannual or annual basis.
4. Open a savings account
Regardless of how great you are or become at budgeting, you need a savings account containing money you can use when an unexpected emergency arises. Your budgeting skills likely will result in a little extra income left over each month after paying your bills. This is the amount that goes in your savings account.
5. Now rebuild your credit
Now you can obtain your first post-bankruptcy credit card. Do not be discouraged if you must get a prepaid one, one with a limited credit amount, and/or one with a high interest rate. You may not qualify for a regular credit card for several months. Get the card that best fits your needs, buy one or two things with it each month, and immediately pay it off. This is the best way to reestablish your credit.
Your post-bankruptcy life will be a great financial adventure – and this time you will be successful. For more information on this subject, please visit this page on our website.