Once you have filed bankruptcy and received your fresh financial start, most folks are excited to take the steps necessary to rebuild their credit. The Denver Post recently had an article (July 27, 2014) that we feel outlines well the steps necessary to take a pro-active step towards getting back on your feet financially when your chapter 7 Bankruptcy is discharged.
First, order a credit report, www.annualcreditreport.com, and deal with any outstanding inaccuracies directly with the credit reporting agencies. You should already have a credit report from preparation of the bankruptcy.
Next, work on a family budget, track your income and expenses and spend only what is necessary. The bankruptcy schedules themselves have income and budget statements which are a good place to start.
Try to set aside an emergency fund equal to at least one month’s salary. This can be very hard, but it is often possible after you no longer have debts to pay.
Next, see if you can get a low balance secured credit card. Check out www.bankrate.com for banks that may lend to folks with credit problems in the past. A secured card is one backed by a deposit paid by you. Then use the card very carefully—always paying off the balance every month. After developing a history of making payments responsibly, you may qualify for an unsecured account.
In general, it is a good idea to stay away from all debt after bankruptcy until you feel solid and confident that you have a secure income source, and can pay your monthly expenses without debt.
The bankruptcy itself requires you to take a very simple Debtor’s Education Course to receive your discharge, which our clients like very much and find very helpful by providing advice and tools towards moving forward in a positive, optimistic way.