Top Things To Avoid After Filing For Bankruptcy

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Filing for bankruptcy is a big deal that will affect your life in both positive and negative ways, and there are numerous things you will need to do before and after you file for bankruptcy. You should always discuss your case thoroughly with a lawyer before filing to gain advice and tips about it, and here are some of the top things you should avoid doing after bankruptcy.

Throwing Away Your Paperwork

Your bankruptcy paperwork is highly important to keep, as you might need some of the documents in the next few months or years. Because of this, do not throw any of them away. In fact, you may want to ask your lawyer for a copy of your entire file when your case is discharged. By getting a copy of the entire file, you will always have the documents you need, and you can use these as evidence.

An example of this is if you notice that your credit report shows that you still owe a debt that was discharged in the bankruptcy. To dispute this debt, you would have to send the credit bureaus a copy of your bankruptcy paperwork that shows that the bankruptcy case discharged this debt. If you do not have your paperwork, you will have a difficult time proving anything.

Handling Your Finances in the Same Ways

A second thing you will need to avoid after bankruptcy is thinking that you can handle your finances in the same ways as you once did. While there are times when people file bankruptcy for things that are out of their control, most people end up filing due to problems managing their money and debt. If you experienced problems with credit card debts, for example, thinking you can wisely use credit cards after bankruptcy is probably not a good idea. While you might be able to do this in the future, for the meantime you will need to develop better financial habits.

Changing the way you manage your finances is vital if you want to avoid bankruptcy again in the future, and this is one of the reasons you must take two classes in credit counseling when you file for bankruptcy. The wisest thing you can do after bankruptcy is to utilize the methods you learned in these courses and apply them directly to your finances. This may include creating a budget, living within your means, and not having any credit cards.

Thinking Your Credit Will Repair Itself

Finally, you will need to avoid the concept that your credit will repair itself, because it will not. When you file for bankruptcy, the posting from the bankruptcy court will stay on your report for up to 10 years. There is very little you can do to change this or get it removed faster, but there is so much you can do to improve your credit score. Failing to take action to do this will result in having bad credit for much longer than what is necessary.

To improve your credit, get your report and start disputing any items on it that are negative and that should not be listed. Doing this with very inaccurate posting could drastically change your credit score. Secondly, apply with a credit card company for a secured credit card and begin using it. Use it for small purchases each month and pay the balances in full when you receive your statements. Finally, get a car loan or personal loan. Any type of installment loans will help boost your credit score if you repay it on time each month.

Filing for either branch of bankruptcy is a big deal, yet it can be an event that offers the exact type of relief you need to regain control of your money, finances, debts, and credit. To learn more, contact a bankruptcy law attorney.


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