4 Tips on How to Bounce Back After a Chapter 7 – Advice for Raleigh Bankruptcy Filers

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If you’re worried about how your finances and credit will fare after a Chapter 7 filing, that’s a valid concern. But if you’ve got significant debts and are behind on payments and every month makes it worse, your finances and credit are already suffering and a bankruptcy attorney can help you get back on track with a fresh start.

But rebuilding your credit after your bankruptcy does take planning and you should get a grip on your finances straight away so that you don’t get mired in too much debt again. Here are four tips on how to bounce back financially after a bankruptcy:

Image source: TotalBankruptcy.com

#1 Pay your bills on time – every time! More than one-third of your credit rating is determined by your bill paying history. Of course the Chapter 7 filing will wipe out all of your existing debt, but you’ll still be left with utility bills, rent or mortgage payment, car payment and cell phone bill. Set up a calendar with reminders for each bill so that you pay it with the paycheck before it’s due – it’s better to pay early than late to make the most of your fresh start!

#2 Update your credit report All of your unsecured debts (except for income taxes and student loans) will be vanquished with your bankruptcy – and you may be able to unload taxes and educational debt as well if you ask your attorney. A couple of months after you file, order a copy of your credit report from each of the major services (Experian, Trans Union and Equifax). You can order one from each agency for free each year. Make sure all the debts you included in your bankruptcy are reflecting that the debt is discharged. For any issues, contact the agency that shows the error and give them the information to correct your file – then follow up to make sure it was fixed!

#3 Get financial planning advice If you got into financial trouble because you’re not great at organizing your bills or have no clue how to budget - get educated. There are a ton of resources on the web about family budgeting and different methods to keep your finances on track. One great option is Dave Ramsey’s envelope method. And if you’re considering expensive investments such as going back to college, work up a plan to make it more affordable rather than just taking on more debt in the form of student loans. Look for scholarships specific to your interests such as these five programs for 3D visual effects students. Whatever you need to do to find and keep your financial footing, get busy!

#4 Ease into new credit (and do it wisely) Within a few weeks or months of filing your Chapter 7, you will start getting credit card offers. Companies research federal bankruptcy filing logs to see who has just offloaded their debt. They know you’ve got money to spend, but the card offers you will get are not going to be great. They will generally have hefty up-front fees and feature high interest rates. Sift through these offers for one card that has the best terms and sign up. Use the card occasionally through the month (but only on necessities that you have the cash to pay for) and pay the card off in full each month. This will reboot your credit without getting you in over your head.

Image source: TotalBankruptcy.com

Take your time when it comes to rebuilding your credit. The last thing you want to do is get back in over your head again. Relax and enjoy the fresh start your Chapter 7 bankruptcy gives you. If you are ready to see if bankruptcy is the right solution for your debt dilemma, get advice from a reputable bankruptcy attorney. Raleigh consumers can often benefit from the debt relief a bankruptcy filing provides – contact a bankruptcy lawyer to find out more.

Dedicated to helping residents of North Carolina find the best solutions to their debt problems. Don’t waste another day worrying about your debt. Call +1-833-627-0115 today to schedule a free initial consultation to discuss your bankruptcy options.