Life After Bankruptcy

August 26, 2009 by  Filed under: Bankruptcy 

Making the choice to declare bankruptcy is never an easy one. When the bills keep piling up, and there’s no money coming in, bankruptcy is often the only option. If you have recently declared bankruptcy, you may think that your life is over, though this is not the case.

Life after bankruptcy simply involves picking up the pieces – one by one. While it’s true that you may not be able to obtain most types of credit for three to five years, there are a lot of things that you can do to start building your credit once again.

1. Live Within Your Means: declaring bankruptcy doesn’t mean that you are off the financial radar. Instead, it means that you have to be even more careful now than you previously were. Make sure that you live within your means during this time. Don’t spend more than you have, be careful not to miss payments, and try to maintain a steady job. Setting and following a budget is often a helpful way to make sure your spending habits stay on track.

2. Renew Your Mortgage: Most people aren’t aware that they can renew a mortgage at any time after bankruptcy. Most lenders simply want to see that you have some form of steady income. If you can provide this proof, then keep paying your mortgage payments.

3. Pay Attention to Your Credit: even after you’ve declared bankruptcy, it’s important to keep track of your credit report. Ask for your report monthly, correct any problems, and monitor your report carefully. 4. Apply for A Private Loan: traditional lenders may not approve your credit applications, but a private lender will. Find a lender that does not rely upon your credit report, apply for credit, and pay back your loan on time. Often, gaining approval for a private loan is the best way to begin rebuilding your credit once again.

5. Seek Credit Counselling: If you aren’t sure where you went wrong the first time around, you may want to speak with a credit counsellor. These experts can help you manage your money properly, and they can also help you gain financial freedom once again.

As you can see, there is life after bankruptcy. You may be feeling sad, depressed, or lonely during this time, but that doesn’t mean that there isn’t hope. Your credit report is a lot like a rubber band – it can snap back into place by following the advice listed above.

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