What do you know about recovering financially from bankruptcy?

 Posted on June 18, 2021 in General Bankruptcy Topics

It took some time for you to become comfortable filing for bankruptcy, but you took the step. Have you made plans to make the most of your decision?

U.S. News & World Report offers suggestions for rebuilding your financial household after filing for bankruptcy. Take steps to improve your monetary health and maximize the advantages bankruptcy provides.

Keep your bankruptcy documents close

Rather than putting your bankruptcy paperwork out of sight, keep it in a convenient place. That way, you have the documents on hand if you apply for a loan and need to provide your bankruptcy petition. You may also need the documents as proof to show creditors you do not owe them money.

Create a plan for rebuilding your credit

While you may apply for secured credit cards to mend your credit score, step carefully. Now is the time to reevaluate your relationship with money and the road that led to you filing for bankruptcy. Rather than apply for and use credit without thinking, create an intentional strategy that supports your values surrounding money.

Make friends with your bank

Do you see yourself applying for a loan from your bank or credit union? If so, establish a connection with a loan officer. Share your bankruptcy story, what filing taught you and steps you take now to ensure you do not file again. That way, when you feel ready to apply for a loan, you have a personal relationship with your loan officer and bank, which may help you receive approval for financing.

It takes time to bounce back from bankruptcy. With a thorough plan, you help yourself come back stronger and financially smarter than before.