Bankruptcy is a good option for people who can no longer afford to make payments on their credit cards, mortgages, or other debts but aren’t sure if they want to give up on their debt-ridden lifestyle. Bankruptcy wipes out all or most of your debt and allows you to start fresh. My bankruptcy has been discharged but now what?
Well, you may have some newfound freedom, but that doesn’t mean your troubles are over. It is a time for new beginnings. One of the biggest challenges for someone who has just filed for bankruptcy is making sure that new credit mistakes aren’t made. The temptation to get new credit is high after bankruptcy, but it can be a perilous time to add new debt.
Make sure you use this time to take a responsible approach to your finances. There are some practical steps that you should implement as soon as possible after receiving your bankruptcy discharge papers. It’s necessary to keep copy of all of your complete bankruptcy file. This can include the petition, schedules, certificates of completion from debtor education courses, any amendments, and your discharge letter. Make sure that you keep your case information in a safe place. You might need it if a debt pops up in the future that was previously included in your case or it might be needed if you are applying for more credit in the future.
One of the first steps you should take is to order a copy of your credit report from each of the three credit reporting agencies. You can request your credit reports at www.annualcreditreport.com. You should check your credit reports thoroughly to ensure that the information contained in each report is accurate. This includes inspecting any accounts that are being discharged in your bankruptcy case.
Bankruptcy is a financial setback that can affect a person’s self-esteem, but it’s important to keep in mind that it is not the end of the world. Bankruptcy is a temporary solution to a much larger problem, and it does not make you a bad person. Although your credit score is likely to be lower than it was when you first started building credit, it doesn’t mean you can’t get back on your feet and start enjoying life again. Rebuilding your credit after bankruptcy will take a little time, but it’s not an impossible task.
In conclusion, there is bad news, but also good news. The bad news is that your bankruptcy will follow you for the rest of your life. The good news is that you can start your life over again.