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Recovering From Bankruptcy

Recovering from a bankruptcy takes some time and some work on your part but is easier than you might imagine. After a bankruptcy, you probably think it will be almost impossible to obtain anything on credit or qualify for a loan ever again. The fact is that with on-time payments you can qualify for a credit card or a loan with a reasonable interest rate in as little as 12 months.

Filing a bankruptcy provides you with a fresh start so that you can put your financial problems behind you and start to establish good credit. This fresh start doesn’t happen by itself. To get the best results, you need to be pro-active with your finances.

Here’s how:

Once you receive the Bankruptcy Discharge Order from the Court, send a copy of this Order, along with a copy of your bankruptcy petition and the list of creditors to each of the three credit reporting bureaus. The credit reporting bureaus have 30 days to make any corrections once they have received the information from you.
About 60 days after you have mailed your bankruptcy papers to the credit reporting bureaus, obtain a free copy of each of your corrected credit reports by visiting www.annualcreditreport.com. Federal law allows you to obtain a free copy of your credit report from each of the three credit reporting bureaus on an annual basis. 
 Pay your bills on time. If possible, pay them early so there is no risk of paying a bill late.
Open up a checking and saving account. See if you qualify for an account at a credit union as the terms from a credit union are usually friendlier to consumers. 
Never take a payday loan or an auto title loan. The fees and interest are too high. It is very easy to get sucked in and again get into financial trouble. Once you have a payday or auto title loan, it is very difficult to repay it.
Avoid loans from finance companies. Credit from a finance company is not good for your credit score. Not only is it very expensive, having finance companies appear on your credit report lowers your FICO credit scores (which makes everything else more expensive)
Obtain a secured credit card. A secured credit card is where you deposit cash in an account and make purchases on the credit card up to the amount of the deposit. Each timely monthly repayment on the credit card will be reflected as a positive mark on your credit report.
Be wary of “credit repair” scams. There is no way that any company can “wipe out” the negative information on your credit report – this includes the bankruptcy itself. These companies charge a lot and the negative information is still on your record.
Create and actively use a good financial budget. It is one of the most important steps towards living within your means and bouncing back after bankruptcy. Boleman Law has created a Financial Management Guide that can assist you with creating a budget you can live with. To get your free copy e-mail ajscott@bolemanlaw.com and a copy will be e-mailed to you.

About the Author:
Boleman Law has 16 lawyers and offices in Richmond, Virginia Beach and Hampton. Our lawyers and highly trained professional staff are experts in bankruptcy.  We only practice consumer bankruptcy law. Our lawyers are asked to present at local, regional and national legal meetings to share their bankruptcy knowledge and expertise with other attorneys. With a steadfast commitment to professional excellence and never straying from the simple founding idea of “all people deserve to be treated with respect” Boleman Law continues to grow.
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