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Rebuilding your credit after bankruptcy

On Behalf of | May 12, 2016 | Chapter 7 Bankruptcy

Once the process is over and the bankruptcy has been discharged, many people are left wondering what happens next. At Wootton & Wootton, we understand that getting back on your feet financially can be overwhelming. However, according to AOL Daily Finance, there are a few key steps that can be taken to restore your credit and move forward with confidence.

For starters, being informed about the post-bankruptcy process is a good place to begin. Many people believe that having a bankruptcy on the record will prevent them from being able to buy a car, obtain a mortgage or get a credit card. However, even with a recent bankruptcy on your credit report you may still qualify for a credit card, albeit a secured one. This means that money will be deposited with the bank ahead of time and then that amount can be drawn on over time. If good habits such as paying bills on time and refraining from unnecessary purchases are employed, your credit score can rebound in as little as six months.

One way to avoid needless spending and ensure monthly bills are paid is to formulate and stick to a budget. Allocating money for each bill and knowing when balances are due are good ways to keep spending in check. A budget can also help you avoid making the same mistakes that caused the bankruptcy in the first place. A good budget will also include room for emergency savings in case an unexpected expense pops up.

Finally, bankruptcy can take a heavy emotional toll on people. Feeling ashamed of past financial failures can keep you from taking proactive measures and making the necessary changes to ensure a bright future. Letting go of any negative feelings and adopting a positive attitude can go a long way toward preventing new financial slipups. For more information on moving on from a bankruptcy, please visit our web page.


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