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You may be worried that since you have filed for bankruptcy you are going to have difficulty
rebuilding your credit status to a positive one. Some people wrongly believe that credit repair after
bankruptcy isn’t possible. While it is difficult, impossible it isn’t.
What to do after bankruptcy
As the bankruptcy stays on your credit report for ten years after the fact, it is important to
remember that any future lenders will know that you have filed and gone through with a
bankruptcy. There are ways to make sure that you are not deemed too high of a risk to lend to by
following certain steps after bankruptcy.
Is it worth rebuilding credit after bankruptcy?
A lot of people think that it isn’t worth it as it stays on your account for such a long time. It is
important to rebuild your credit after a bankruptcy as this will let lenders see that you are serious
about making a fresh start. It can be a long and drawn out process when you are rebuilding your
credit and it may take years. These are years well spent however, as afterwards you will be able to
borrow on your credit rating later on.
What to do first
The first thing you need to do after bankruptcy is to learn to live well within your financial means.
This simply means you will have to live on what you earn and spend a lot less than you bring to the
household.
When you have done this you need to take a long hard look at yourself and your money. Look at
how you got into a bankruptcy filing in the first place. Did you lose your job, fall ill and was
therefore not able to work or did you just spend too much and get over your head? There are
many ways to get to a bankruptcy but you have to be able to avoid the same pitfalls after. It can be
quite therapeutic to work over what went wrong and promise yourself and your family that it
won’t happen again.
Pay everything on time
This is extremely important and we are not just talking about loans, credit cards and mortgages.
Every single bill you get needs to be paid on time and in full. Your utility bills, phone bills, cable bills,
rent and other standard bills have to be paid on time as these are also classed as creditors. This is
the first step to credit repair after bankruptcy.
Cut the luxuries
Another thing you have to do after bankruptcy is stop spending money on things you don’t really
need. Do you really need cable TV? You may be able to do without it until you are at a better
financial footing.
Credit repair after bankruptcy can be slow and difficult, but it is imperative you start rebuilding your
credit straight away.
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