5 Things to Do After Bankruptcy

You have received your discharge after your bankruptcy, and you are ready to begin again.  These are some important things to do to help ensure that everything after your filing goes as smoothly as possible so you do not end up in the same situation as before your bankruptcy. 

Collect & Preserve All Bankruptcy Paperwork 

You should have received a full copy of your bankruptcy petition from your attorney. 

This is a 40-50 page document of detailed financial information that can include:

  • Facts about the debts and assets involved in your case
  • A copy of the notice of bankruptcy filing, and your discharge from the case
  • Credit counseling certificates

The petition, the notice of filing, and the discharge are the most important documents.  If you lost them you can pay and get them online at a minimal cost.  Why do you need to keep them?  Lenders may want to see them if you apply for credit at a later date.  You also need them to make sure no one can try and collect on a debt that you filed bankruptcy on in your case.

Check Your Credit Report Regularly

Credit reports from each of the three major credit reporting agencies can be obtained for free once a year.  It is important to see what your creditors are saying about you.  Let the dust settle from your bankruptcy and in 6 months and begin to make sure that you have zero balance on the debts you filed on.  This is so it isn’t reflected as outstanding debt. 

A bankruptcy can stay on your credit for 10 years by law so you need to monitor how it affects your credit moving forward.

Start a Budget and Review it Regularly

It is important to know your assets and liabilities.  You need a basic budget to keep from having a similar problem down the road.  Bankruptcy is like taking a class on financial management.  Hopefully, you have learned that credit is a big responsibility and you need to be careful with the credit so as to avoid problems.  Have goals for yourself and your family.

Start an Emergency Fund

This is a part of good budgeting.  You can start saving for emergencies.  This is money that you put aside after your regular expenses for a flat tire, car trouble or unexpected household issues that can arise.  This is a smart measure so you don’t have to borrow when a need arises you didn’t expect.

Obtain New Credit

Rebuild your credit in a smart way.  Control your budget and what you spend.  Start with a small credit limit and monitor your charges carefully so you don’t get over extended. 

If you are contemplating bankruptcy and want to learn more about the process, call us today for a free consultation.

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