3 Things to Do After You File for Bankruptcy

3 Things to Do After You File for Bankruptcy

If you have filed for bankruptcy recently, you are probably in a difficult situation trying to figure out the best way forward. While filing for bankruptcy can be tough, it is the first step in starting over, and you can move forward from bankruptcy.

As you begin your journey after bankruptcy, you may be confused as to where to focus first and what to do to fix your situation further. Here are some things to do after you file for bankruptcy:

Save All Paperwork from You Case

Ideally, you had a bankruptcy attorney help you file your case. Ask them for all pertinent paperwork that you need to keep, and file any important paperwork that you have on hand. If you handled the case yourself, keep all documents and file them.

There are several important documents you will receive from court, in particular, that you should keep. Future lenders may ask to see these documents, and these can also be kept as proof of your filing should any debtors try to collect from those debts in the future.

Save Money and Budget

In order to prevent yourself from getting into a similar situation in the future, be sure to save some money and budget your income to avoid going into debt. Save an emergency fund that you can draw from if you require money quickly for something absolutely necessary like a home repair or medical expense.

Keep track of your spending and saving using a budget and adjust the budget as needed so that you can bring in more money than is going out. This will help you avoid going into debt again.

Monitor Your Credit and Build Your Credit

After bankruptcy, you will want to keep a close eye on your credit reports, which can be requested for free once a year from the three major credit reporting agencies. While your bankruptcy may be reflected on your credit report for up to ten years, you want to keep a close on it so that the debts that were discharged do not show up months or years later and ding your score. Debts may be sold to other agencies, not realizing that you can file for bankruptcy, and you will need to make sure these debts do not pop up on your credit reports at later dates.

At the same time, you will want to safely and smartly build up your credit score. Rebuilding your credit will come with time, and you can start small and slow to avoid going into credit card debt or other forms of debt. To start building your credit, you may open a credit card with a very small line of credit and pay it off in full every month to avoid carrying the debt.

After bankruptcy, there are several important things you should do, including making sure you have all necessary paperwork, saving money and budgeting to avoid debt, and monitoring your credit report and building up your credit score, all of with will help you on your journey.

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