In our previous installment on life after bankruptcy we discussed the curveball filing for bankruptcy can throw at you. In this installment we will continue to review ways in which you can rebuild your financial life after filing for chapter 7 bankruptcy or chapter 13 bankruptcy.
Bankruptcy attorneys recommend that individuals who have filed for bankruptcy begin to re-establish their credit as soon as they possibly can. One way to accomplish this is by establishing a personal line of credit that is secured through a savings account. This helps to establish credit without the risk of spending more than you have available to spend. The one element to remember is that the interest you will pay for the line of credit will far outweigh what you will earn in interest on your savings account.
Hold off on buying a car until you have built there has been time to establish credit again. It takes about two years to get to the point when you should start searching out loans such as home loans and automobile loans. Continue re-building credit during this time to ensure you can obtain a loan when you start looking into larger financial purchases.
If a credit card is obtained use it only for emergency situations. Do not card hop between credit card companies either. Stick with one or two companies to help improve the long term credit record that is being established.
Be cautious of scams after filing for bankruptcy. Many scams exist and scam artist prey on individuals who they believe to be susceptible. Vulnerability is often a symptom experienced after an experience like bankruptcy. Don’t give into it. Never believe that anyone that promises to fix your credit. There is no magic method in establishing credit after your bankruptcy is settled.
Rebuilding credit after bankruptcy takes time. While you are re-establishing your financial life be wary of any offers that sound too good to be true. Your bankruptcy attorney will recommend taking time before accepting any offers of extended credit or instant credit fixes. Research all companies offering anything. It is more likely than not that a quick online search will offer you a great deal of information on any and all companies that are known to be scam artists.
After researching an offer, if there is still any doubt don’t go further with the deal being presented. Walk away from offers that aren’t a hundred percent above board. When re-establishing your credit it is your financial reputation on the line be sure to protect it at all costs.
Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.