Life After Bankruptcy – Hope in the Aftermath
Life after bankruptcy begins immediately after you leave the courtroom from having your debts discharged. No one wants to be in this position, but you must look at this event as a way to take control of your life again. Be assured that the lack of harassment from creditors alone will make the healing process progress faster.
Your credit score will be hit hard once the bankruptcy is listed. While this is bad, take advantage of this down time to regroup and restart your financial life. In about 18 – 24 months you will be able to qualify for credit again.
If you have filled Chapter 13, you will need to make payments to the court each month. Do this every month, and on time. The repayment of these debts will help boost your credit rating for the future. It will also keep you out of trouble with the court.
As you begin your life after bankruptcy, commit to tighter financial control for yourself to avoid problems in the future. While everyone realizes that not all bankruptcies are a result of poor financial planning, planning for financial stability is still a good practice for everyone.
Make sure that you pay all your bills on time each and every month. This includes your utilities. While utility companies do not report on time payments, they often report late ones. Utilize things such as auto-pay and AFT to guarantee that payments are made on time. Each month that your debt is listed as paid on time your credit score will raise.
People that have filled bankruptcy can qualify for home mortgages within two years of the debt dismissal. This time period is a great time to begin saving for a down payment as you improve your credit score. Many FHA programs will even consider a mortgage application after 18 months.