How to Recover from Bankruptcy Quickly!
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Millions of Americans have faced or are facing bankruptcy. Though it may not seem like it, there is life afterwards! Here is everything you need to know to bounce back quickly.
As delinquencies and foreclosures rise, millions of people are struggling daily to stay afloat. With no where to turn to, families everywhere are running out of options.
Bankruptcy may be the only decision for some.
The economic and emotional harm brought on by bankruptcy is something few can understand. While it seems like it is the end of the road, it is important to remember that it is really a new beginning. And this time you want to do it right!
You can get your life back faster than you ever dreamed! Here is how!
The most important thing to remember is this: DO NOT LET THE BANKRUPTCY DEFINE YOU!
Do not beat yourself up! Promise that you will never let something like a bankruptcy happen to you again, but then move on. It was one time in your life, not who you are!
Now is a great time to develop multiple streams of income.
Regardless of if you have a secure job, it is wise to always have income from more than one source. There will never be a better time to invest in you than right now! Why not learn internet marketing, photography or some other skill that could bring in a few hundred extra dollars a month? (Just be careful you don’t spend too much on systems that you never implement!)
Of course, you also need to re-start your financial life! The first thing you will want to do is reestablish your bank accounts. This may not happen overnight. A credit union, if you have one available to you, may be a good option. Go in and establish a relationship. Explain what happened to you and find out what it is going to take to get an account. Then do it!
Next, you will want to reestablish your credit. This step might seem counterintuitive. After all, wasn’t it too much credit that got you into this mess in the first place?
The only way to improve your credit score is to use credit. You have probably already learned that having a low or no credit score is very expensive.
Right after you have filed bankruptcy, you may think that it will be impossible to get new credit. Luckily, there are a couple of options.
One of the best things you can do is go to your bank and see if they will let you buy a CD and then take out a loan against it. Because they will be completely secured, the bank is more likely to grant this loan. Even though you essentially end up paying interest on your own money, in the long run you win because you have established a new payment history.
Another good option is opening a secured credit card. You may have already gotten a few offers in the mail! Secured cards work in the same way a CD loan does. The lender will require you to make a deposit and issue you a credit line against it.
Be smart when you choose your credit card company! You are looking for a low annual fee. Avoid paying an application fee if at all possible. The ability for the card to convert to unsecured at some point in the future is another great feature to look for
Now that youve reestablished your credit, make sure you manage it wisely! Make all of your payments on time as lenders are likely to be less forgiving of minor slips ups than they would have been before the bankruptcy.
You need to monitor your credit report monthly.
Make sure that lenders aren’t reporting accounts that were included in your bankruptcy as open and past due. This happens more often than it should, especially when lenders have sold your account to collection agencies.
The best thing to do is to have a form letter on hand to send to anyone who contacts you. Make sure it includes your information, the case number and your attorneys contact information. That way, it is easy to respond and nothing falls through the cracks.
If you follow these easy steps, you will have your life back in no time!
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