Once you file for bankruptcy, you still have a lot of work to do to recover your credit and improve your financial health. Do you know which steps benefit you and your finances most?
U.S. News & World Report offers tips for recovering from bankruptcy. Understand how to make the most of bankruptcy and get your financial health back on track.
Keep your bankruptcy paperwork close at hand
Do not give in to the temptation to stuff your bankruptcy documents out of sight and out of mind. Instead, keep them handy in case you need them for lenders. You may also need your paperwork to prove you do not owe creditors money if they pursue you for non-existent outstanding debts.
Trace your bankruptcy to the roots
Do you know which financial missteps paved the way for you to file bankruptcy? Take this time to understand why and how you got into debt. Maybe you make impulse purchases when you feel stressed or anxious. Or perhaps you could consider asking for a raise or pursuing a promotion.
Make a plan to build your credit up
Expect your credit score to take a hit after you declare bankruptcy. Make a plan to revitalize your score, but ensure you think things through. For instance, rather than accept the first post-bankruptcy loan you qualify for, consider getting a secured credit card. You may also look into reporting phone and utility bill payments to credit card bureaus to boost your score.
Your journey to financial recovery begins after declaring bankruptcy. By creating a viable strategy, you better your chances of improving your relationship with money better than you imagine.