Even though most of your debt is usually settled, there may be some unresolved debt on your record. This is probably because the debt was not recognized in the original bankruptcy filing. Other debts not recognized by bankruptcy filings include any obtained through illegal activity or transaction. Once you've taken this step, you will begin to clear your name.
Take caution with credit cards
Since credit card debt may be one of the reasons for your money troubles, should you apply for more after bankruptcy ? There's no short answer for this question. The one thing you need to do is access your credit report. Your credit report will list your credit rating and determine the type of payer you are (e.g. slow payer). After you've examined this document, you can get a feel for what type of credit card you're eligible to get—if you can get one.
If you do get a credit card, put only necessary or really important items on the card. Putting extravagant and unnecessary items on your card is setting yourself up for ruin—again. Some people will opt for a secure credit card. In this case, the credit line is equal to the amount you've deposited in your bank account. This is a great idea because you're less likely to go beyond your limit. For an even better idea, use an unsecured credit card, with the credit limit tied to your annual income. The best idea is to simply use checks and your debit card. That way, your payment transaction is completely over.
Warning: you cannot fix your credit for a long time
If a company claims it can fix your credit in less a year after bankruptcy , run! This is impossible because it takes years for your credit to be fully repaired. In fact, it may take a as long as a decade. You should also avoid credit repair services. No matter what the company promises, it cannot completely eliminate bad credit. The reality is you may be turned down for loans and credit cards, but you just have to roll with the punches.
What about refinancing?
After your bankruptcy discharge, you may have considered refinancing your home. Some chapters of bankruptcy are more lenient than others. For example, chapter 13 bankruptcy claimants can refinance the day after the bankruptcy is discharged. If you were a chapter 13 claimant, you can retain some of your assets while you try to settle your debt.
Begin saving money
I know you're still paying off some lingering debts after bankruptcy , but you should save as much as possible. Take 10 bucks out of your weekly paycheck every week and put it in your bank account. If you practice this action for one year, you'll have an extra $520 at the end of the year. It may not seem like much, but it's a start.
Life after bankruptcy can be tough. Sorting and settling your finances is a long-winded process. But once you clean up your credit, the doors that were once closed to you will open back up eventually.
By Michelle Presbury
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