What do you know about recovering from bankruptcy?

What do you know about recovering from bankruptcy?

On Behalf of | Dec 23, 2021 | Firm News |

To prepare for filing bankruptcy, you want to set yourself up for financial success in the coming years. How do you make the most of making a tough decision?

CNBC offers tips for recovering from bankruptcy. Taking the proactive route may benefit you more than you know.

Look out for scams

When you file for bankruptcy, you may receive offers to repair your credit. If so, steer clear of offers that require upfront payments, instructions to not communicate with credit reporting agencies and offers that do not include your legal rights. These are common signs of credit repair scams that do more harm than good.

Keep a close watch on your credit report

Once you file bankruptcy, make a habit of checking your credit report regularly. If you no longer bear financial responsibility for specific debts after filing, your credit report should reflect that. Other than an accurate reflection of your current debt, your report should be free of errors.

Understand your financial blunders

Carve out time to follow the path that led to bankruptcy. You may have bad habits that harm your financial health, or perhaps you did not have the information or resources to stay on top of your money. Either way, have an honest conversation with yourself about where and how to improve. That way, you reduce your chances of filing bankruptcy again.

Consider a secured credit card

While rebuilding your credit, look into getting a secured credit card. You must make a down payment to receive a secured card, but using one and making on-time payments helps qualify you for an unsecured card.

You deserve all the benefits bankruptcy offers. With a financial resiliency plan, you pave the way to monetary peace of mind.

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