Rebuilding your finances after bankruptcy helps set the stage for your financial future. Filing for bankruptcy provides a fresh financial start. Still, being proactive in regaining control of your finances is essential to building a solid foundation for long-term financial stability. Learn more about how to rebuild your finances after going through the bankruptcy process.
Assessing Your Financial Situation
Rebuilding Your Credit
Understanding the overall impact of filing for bankruptcy on your finances is a significant first step. Review your credit reports for accuracy and continue monitoring your credit score to track your progress while identifying areas you can improve.
Check Credit Reports Regularly for Errors
Checking your credit reports for errors can be a huge factor in successfully repairing your credit score.
- Make sure that any accounts discharged in bankruptcy have a $0 balance
- Verify that any accounts discharged in bankruptcy are actually reported as “discharged”
- Check to see that your bankruptcy filing date is correct. (Bankruptcy remains on your credit report for up to ten years, so a misreported filing date can lead to the bankruptcy remaining on your report for longer than necessary)
When you challenge the validity of the information on your credit report, they must respond within 30 days. If they don’t respond within that 30 day window, your challenges are automatically accepted and your credit score shouldn’t take long to reflect those positive updates.
While most accounts are discharged within your bankruptcy settlement, certain accounts may still need to be paid. So, be sure to pay anything you currently owe on time. Next, securing new credit and building on it further helps boost your credit score. Finally, consider applying for a secured credit card which can be converted into an unsecured credit card in as little as a year, depending on the specific terms.
Learn More: Ending Creditor Harassment
Will Claiming Bankruptcy Hurt My Credit?
Budgeting and Expense Tracking
Additionally, take a close look at your current income and expenses. This enables you to develop a realistic budget and set attainable financial goals for the future. As you continue tracking your expenses, your budget may evolve accordingly.
A Solid Foundation for a Healthy Financial Future
Being proactive about taking control of your finances immediately after filing for bankruptcy makes achieving your future financial goals significantly easier. At Todd Cushner & Associates, our White Plains-based bankruptcy attorneys can guide you through this process, helping you attain long-term financial stability. Contact us today to schedule your free consultation.
