After you’ve filed for bankruptcy and finished the process, you can start to look toward the future. You need to take steps to rebuilding your credit.

Although it may be difficult, it is not impossible. It may be like getting your first job in some ways. Although you had no experience, you finally did get a job. It likely was not your dream job, but most people can work little by little to gain more responsibility. At some point when they look back, they may be shocked how far they have come.

Unfortunately, with bankruptcy on your record you must pay more to borrow money since you will be considered a subprime borrower. This means you will face higher interest rates and higher penalties for late payments since you are at a greater risk of default.

When you file for Chapter 7 liquidation, you dramatically reduce your debt-to-income ratio. You also may not be allowed to file for Chapter 7 again for at least eight years, which actually may make you a better immediate risk for some lenders.

If you’ve filed for Chapter 13 bankruptcy, rebuilding your credit may take a bit more time since your debts are restructured and you will be slowly paying them off.

It is important not to try to borrow money too quickly. Once you decide to borrow money, make sure you make timely payments every month to help reestablish a good credit history and obtain loans with the best terms when possible.

You may want to consider opening a secured credit card account. This is an easy way to help build up your score.

While you are rebuilding your credit, you should also make sure you have an emergency reserve so you don’t find yourself back where you started. Do not get caught up in payday loans or predatory lenders who prey on those with bad credit.

You can keep a close eye on your credit scores by looking at your credit reports from the major reports. Make sure there are no errors, all information is accurate including your job and residence.

If you are struggling and considering bankruptcy, make sure to call the office today. I can help you figure out the best path to take and how to begin rebuilding your financial life.