You successfully filed a Chapter 7 bankruptcy and you’re ready to save, save, save, avoiding the mistakes which led up to the bankruptcy. Some are ready to spend, spend, spend, learning nothing from bankruptcy. It’s better to be the saver, of course, and good to learn from the experience.
We often get asked, “What do I do after a successful bankruptcy?” Thousands in Georgia are discharged of millions in debt every single year. If you’re one of them, it’s time to start taking steps to avoid filing ever again. This blog guide can help.
Pay Bills Early, Always Pay On-Time
Paying bills early may seem obvious. But many go right back into the old mode of paying bills by credit card the day it’s due, if not forgetting about the bills entirely until problems result. This is quite common, nothing to be ashamed of, but certainly something you want to avoid. Bankruptcy experts always say you should pay bills early after filing. Pay them early as much as possible. If you are running behind one month, it’s okay to pay on-time. However, don’t get in the habit of just paying on-time; pay early to save yourself the headache and start rebuilding your credit.
Going to The Wrong Money Lenders
There are some horror stories of people getting into debt after losing a job. They had been getting advances from loan companies just to pay the bills on time. Then they got fired, couldn’t pay the advance financially company, and got stuck in a debt with a horrible interest rate. Avoid money lending companies for check cashing and advances. They are the worst way to get money.
Avoid Co-Signers
You may think you can easily get a loan or new account by having a co-signer. A mother helping her son, a father for his daughter, a sister for her brother. However, it’s best to protect your friends and family. You do not want to have them owing thousands because you can’t make a payment. It may sound odd, but you want to be the only one affected. Therefore, co-signers after a bankruptcy is a bad idea.
Getting Credit and Loans
After filing bankruptcy, it may be difficult to find a good lender. You will be told no on many applications and in meetings. However, these men and women are just doing their jobs. You can always get new credit lines and loans. How? Simple, ask the lender who might take you on. Don’t just take the refusal and go to the next company on the list. One financial expert points out you should ask open ended questions. You ask the lender, “what would you do?” Or, “who might finance me?” They often enough have some ideas. There are always options.
Rebuilding Your Credit
A checking and saving account are the first steps in rebuilding your credit. You should also consider getting a secured credit card. You pay upfront on these, and the more you pay the more your limit is. You might pay $1,000 and get a balance of $1,000, though you pay that balance outside the initial payment. You do not lose this money; you can get it back easily. You should also consider opening up some store credit cards, though remember to only buy needs, not wants.
There are many other ways to rebuild your credit, get loans, and protect your finances after a bankruptcy. Keep reading Georgia Debt Law for tips before, during, and after bankruptcy.
