Life After Chapter 7 Bankruptcy

So you have filed for Chapter 7 Bankruptcy, been through the case, and now you are in post-bankruptcy life! But now what are the correct steps to make once you are finished with Chapter 7 Bankruptcy? Well first, let’s gather some information about what will be effected in your life. A Chapter 7 Bankruptcy will most likely stay on your credit report for up to 10 years. Luckily, this will not prohibit you from building back up your credit. In fact, credit card offers will most likely come flying your way because you have most likely just cleared up some of the monetary budget by clearing your bankruptcy debt. One thing to look out for, they may have very high interest rates with low limits attached to them.

But how do you start rebuilding that credit? While you will be receiving credit cards from different organizations, it is important to grab a secured credit card from your own bank. For this type of card, it is important to know that you will deposit a certain amount of money into the bank, which will be collateral for the card. In return, the line of credit for the card will be equal to the amount deposited into the account. These payments are usually reported on your credit with a secured credit card. Lastly, check on the credit report for any errors that may have been made from the bankruptcy discharge. This could affect your future credit and should be looked over thoroughly.

Life After Chapter 7 Bankruptcy

Lastly, the best thing to do when trying to rebuild after a bankruptcy is to simply budget. Most likely, the reason you fell into bankruptcy in the first place was because of your spending habits. This is not always the case, many times the medical bills and fines start to cost too much, and you have to file for bankruptcy. However, it is sometimes a case of budgeting your money incorrectly. So the best way to stay on the right path is to simply avoid buying items that you can’t afford with your credit, and instead pay for it with cash, or just avoid buying it at all!

The battle back to a normal credit score will be steep, but sometimes it is the only choice that you may have! If you are in debt, contact the Law Office of Nicholas J. Del Pizzo today!

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