Bankruptcy can be a devastating process for anyone. You may even feel like you have failed in life. The truth is, we are all human and we make mistakes.
Credit is like a fragile vase, once you drop it and it cracks, no matter how much you glue it back, somewhere, there will be a leak. No matter how hard you try to stay on top of your credit, something always seems to sneak through the cracks.
Bankruptcy is just one alternative out of several. It should also be your last resort, seeing that you can only file every 7-10 years. However, bankruptcy is the key to a fresh start. Life does exist after bankruptcy, and with a little advice and encouragement you may be able bring your credit to par and maintain it. There are several ways you can build your credit up and keep it that way.
After filing bankruptcy restrain from applying for any credit for at least the first year. Many people are not aware, but having several creditor inquiries on your credit report can cause significant damage to your credit score and credit reputation.
You may want to open an account with a credit union. Credit unions are said to be easier to establish credit with after bankruptcy. The money you would usually spend on credit cards and interest rates can now be invested into a savings account with your credit union. It is crucial to keep your account and reputation with credit union in good standings. Later on down the line, your credit union may be the first to offer you a car or home loan.
Make sure you pay all of your remaining and current bills on time. You don’t want to be in the same spot 10 years from now. Make sure all of your bills are paid on time. Not a day later. Besides, this is the whole reason your filing bankruptcy.
Try to keep all of your current dept below 30 percent of your income. Develop a budget plan, to make sure you don’t over extend your income, causing you to delay on payment.
If you follow these simple guidelines, you will find yourself back on track in no time. Life does exist after bankruptcy and so will your credit.