6 tips to help find your financial footing after bankruptcy

 

Nearly 1.2 million consumers filed for bankruptcy in 2012 and the number of consumers filing for bankruptcy is expected to remain constant as the economy continues to struggle. Two things that are on the top in the list of reasons for bankruptcy filing are job loss and unforeseen medical expenses. If a person has had to reorganize debt and they are thinking whether they will ever be able to recover financially, then here are six steps that can help a person get back to the life like before.

 

1. Address the cause of bankruptcy

Every individual who files for bankruptcy must undergo credit counseling and should also complete a debtor education program as these can assist in creating a budget, managing money and using credit with a sharp mind. One can use this knowledge to address the problem that took them to the bankruptcy court in the first place. Savings in good time help a person in their bad time and also help in dealing with unexpected financial hardships. Everyone should set up automatic transfers into their savings account; the limit can be set according to the earnings of a person.

 

2. Rebuild credit profile

Financial problems in the record of any individual make it difficult for them to obtain credit but it is still possible to get. A person with bad history can get a secured credit card but to make a credit profile better, the credit bureaus must record the responsible use of the credit. One thing should be kept in mind that not all secured cards report payment histories to credit bureaus, so a credit card should be received that does.

 

3. Make a habit to pay promptly

Bill-paying habits of a person affect the credit profile so for a good credit profile, an individual should make on-time payments for rent, utilities, auto loans and other expenses even after filing for bankruptcy. Consumers who file for debt reorganization through Chapter 13 bankruptcy must make regular payments to repay debt and strictly follow the order of court.

 

4. Credit reports must be checked regularly

Credit report of a person who filed for bankruptcy can be seen after a few months of filing the bankruptcy. A person should check his/her credit report regularly to make sure that debts have been discharged and accounts properly closed.

 

5. One should plan for future loan borrowing

A person may be eligible for an FHA-insured loan as early as 2 years after filing a bankruptcy, so if he/she wants to buy a home then they should begin saving for the down payment now.

 

6. Beware of credit-repair scams

It is common for companies to approach individuals who filed for bankruptcy and they promise the bankruptcy filers that they will assist in fixing their credit scores. A person should be careful as these companies are mostly fraud and a person should also report the suspicious credit repair agencies to the state attorney general’s office.

 

RBD Headshot 2A person should not get discouraged but should remain focused on the advantages they will get when they regain their financial footing.

Contact our Dripping Springs Texas Law Firm today to speak with an attorney. Call (512) 615-3569to find out how Attorney R. Brian Daniel has helped many other people with legal questions just like yours!

 

Author’s Bio:

I have spent my entire career focused on DUI & Vehicular Related offenses, having represented over 1,700 DUI clients in the past 9+ years.

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