Bankruptcy is a life changing event and after the financial scrutiny involved with filing for bankruptcy in Chicago, you need a plan to get back on track! It is a great relief to have the heavy burden of financial debt lifted. Having a plan in place will help you recover with confidence.
- Start Watching Your Credit Score – Get a copy of your credit report every year to see how your score has changed.
- Pay Bills On Time – Late Payments will lower your score. Paying on time is good practice for everyone.
- Manage Your Budget Weekly – Find a tool for budget management such as mint.com and then sit down weekly to examine your budget and your spending.
- Start Saving – Set aside some money each month as part of an emergency fund. Automatically saving $25 – $50 is a great way to get back into saving and prepare for a solid financial future. Once you have an emergency fund you can fall back on move that automatic savings to a 401k, IRA or college fund.
- Consider a Personal Loan – A year after your bankruptcy discharge consider taking on a personal loan. On-time payments to a personal loan can boost your credit score and prepare you for a larger purchase down the road such as a car or home loan.
- Be Cautious About Credit Cards – If you feel it is necessary, look into a secured credit card 6 months after your bankruptcy discharge. Do not sign up for the first offer that comes your way because the terms will be terrible and credit cards can be risky.
- Get Back into Real Estate – Bankruptcy does not mean you will never own a home again. Work on building your financial profile for two years and then begin looking into a mortgage. Your bankruptcy will still be on your credit score but that does not mean you won’t be able to move on.
Bankruptcy is a great way to get a fresh start. Get excited about building your credit score up and take pride as you create a financial future you can count on.
If you haven’t been through bankruptcy and want a face to face meeting to go over your financial situation, contact Chang andCarlin, LLP today. We offer a Free, No Obligation Legal Consultation to help you get the information you’ve been looking for. There are no hidden fees, obligations and no pressure associated with this consultation. Our Chicago bankruptcy attorneys are here to help!
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Did You Know?
When applying for jobs an employer will need a release from you to check your credit. Most companies will not disqualify you because of a bankruptcy but it’s always better to be honest about it in the final stages of the hiring process.
Bankruptcy will not ruin your credit forever. In as little as two years you can build back up to a really good score.
Bankruptcy does stay on your credit score for 7-10 years BUT this won’t stop you from moving on. Credit can be greatly improved in months and some people qualify for a mortgage in 3 years.
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The article above appeared in the Suburban Legal Group "Debt, Mortgage, Bankruptcy, Foreclosure Newsletter". Issue – 37 | May 2014