If you are considering personal bankruptcy, you may have already hit the threshold that many experts identify as the point when bankruptcy might be an appropriate legal vehicle for you to get yourself back on solid financial ground. If you have bills you cannot pay and you have no identifiable excess resources coming down the pike, consulting a professional now might be a wise move.
Bankruptcy can be complicated and timing of filing can be critical. By speaking with experienced bankruptcy counsel earlier, rather than later, you give yourself more time to explore your options. Depending on the circumstances of your case, it becomes easier to identify the right moment for filing. It might even be possible to develop a plan that avoids bankruptcy completely.
If the indicators point to filing for bankruptcy, there are a number of possible strategies to consider for how to make the sting of the experience dissipate more quickly. These are steps experts recommend after discharge of your bankruptcy case.
- Build credit over one year with a secured card. There are cards available without annual fees. Your credit limit will depend on how much you can put on deposit with the card provider. Charge something once a month, some suggest a known recurring expense. Then, pay it on time every month.
- Track your credit history with a free monitoring service. Your score was hurting before you filed for bankruptcy. Monitoring it regularly gives you positive feedback as it recovers. Eventually, standard credit card offers will return, but your practice shouldn’t change. Limit charges and pay off balances every month.
- Recall why you filed. Bankruptcy is not a condition to be ashamed of. It is how you recover financial security. Whatever prompted your filing, develop and follow a budget so it is less likely to happen again.
By taking the right actions at the right times, it is possible to overcome financial challenges and make a fresh start.