Recapture Your Life After Bankruptcy!
Hard economic times have left many Americans facing the devastation of bankruptcy. While it can be an emotionally grueling time, it is important to remember that there is life afterwards! Here is what you need to know to recover quickly.
Not a day goes by that you do not hear about a family struggling to pay their bills. Many have no where to turn to and very limited choices.
For some, the only option is bankruptcy.
Bankruptcy leaves both financial and emotional scars that few can understand without having witnessed it themselves. Still, it isnt the end of the road but rather a new beginning.
If youve just been through a bankruptcy, here are some easy steps that will help you get your life back quicker than you thought possible.
The most important thing to keep in mind is that you can not let the bankruptcy define who you are!
Stop beating yourself up! Its ok to vow that you will never go through anything like that again, but let it go. Realize that that was a specific period of your life and not who you are. The past is no reflection of your future. Its time for you to move on.
A great way to move on is to take the time to generate income from multiple streams.
Regardless of if you have a secure job, it is wise to always have income from more than one source. There will never be a better time to invest in you than right now! Why not learn internet marketing, photography or some other skill that could bring in a few hundred extra dollars a month? (Just be careful you dont spend too much on systems that you never implement!)
Starting your financial life over is also very important. The first step should be opening a bank account if you lost your account during the bankruptcy. This could take some time. A credit union or grocery store bank may be a good place to start. Do not underestimate the value of establishing a relationship. Even though the branch employees may not be able to change the rule for you, they can help by explaining what you will need to do to get an account and going to bat for you to help it happen.
After you have a bank account, you will want to begin reestablishing your credit history. Some people are afraid to do this, since it was too much credit that got them into this mess in the first place.
Unfortunately, you have to use credit to get or improve your credit score. And having a low or no credit score is very expensive.
Right after you have filed bankruptcy, you may think that it will be impossible to get new credit. Luckily, there are a couple of options.
A Certificate of Deposit loan from your bank is one of the best things you can do to restart your credit file. What you will need to do is go to your bank and see if they will allow you to open a CD and take a loan out against it. Although you will end up paying interest on your own money, in the long run it is a sound strategy because you will reestablish credit quicker than you would be able to otherwise.
Another good option is opening a secured credit card. You may have already gotten a few offers in the mail! Secured cards work in the same way a CD loan does. The lender will require you to make a deposit and issue you a credit line against it.
It is important that you choose your credit card company wisely. You dont want to pay an application fee and you are looking for a low annual fee. Additionally, you want a card that will convert to an unsecured credit card at some point in the future, typically after 18-24 months of on time payments.
Now that youve reestablished your credit, make sure you manage it wisely! Make all of your payments on time as lenders are likely to be less forgiving of minor slips ups than they would have been before the bankruptcy.
You will also want to keep a close eye on your credit report.
Keep a close eye on all of the accounts that were included in your bankruptcy. Very often, lenders will continue to report these accounts as open and past due.
One of the easiest solutions it to keep a letter on hand to send to any lender that contacts you. Include your personal information, the bankruptcy case number and your attorneys contact number. If you have this on hand, it will be easy to respond to any lenders who are still trying to collect from you.
By following these steps, you can bounce back from bankruptcy in no time! In several years, you will even be able to own a home again!