You may decide to file for bankruptcy once you realize that there’s simply not a way for you to continue to make payments on debt-related accounts sustainably while still paying for your basic life needs. While it might seem disheartening to go through the bankruptcy process, this is actually a wonderful chance for you to enjoy a relatively fresh financial start.
One of the most pressing questions that you may have is how you can start to rebuild your credit worthiness and your financial stability after you’ve filed. This isn’t going to be a quick fix or a simple process, but it’s one that can be very rewarding.
Use the lessons you’re learning
Credit counseling and debtor education course during bankruptcy both provide you with information you can use to make informed decisions about credit and your finances in the future. Using that information may help you to determine what options you should pursue as you try to rebuild your credit history and stabilize your financial future.
Obtain a secured card
For many people who have filed bankruptcy, a secured credit card is one of the best ways to start to rebuild credit. You’ll have to give the card issuer a cash deposit to open the card. The credit extended to you is equal to that deposit. The credit card issuer keeps the deposit and you make payments on any amount you charge. Over time, this can boost your credit score and provide you with a credit history, so it’s critical to make all payments on time.
Build an emergency fund
Another important step that you should consider is building an emergency fund. This is money that you can access quickly in case you have an unexpected emergency. The goal is to prevent you from having to try to take out high-interest loans or rely solely on credit cards to make ends meet if something comes up that you didn’t expect.
If you’re drowning in debt, bankruptcy may be the option that helps you regain control of your financial future. Ensuring that you file the best type of bankruptcy for your needs is important, so consider seeking legal guidance before committing to any particular approach.