Even though filing for bankruptcy can help you achieve a fresh financial start, the period after you file will likely present some new challenges. For example, your Chapter 7 filing will remain on your credit report for 10 years, which can impact your credit score. For this reason, the steps you take to manage your finances and re-build your credit score after bankruptcy are crucial to improving your credit and moving forward with your financial future.
Cut down on luxury spending:
It may seem like common sense, but it is very important that you analyze your spending practices and stop spending money on unnecessary items. Many find cutting the following from their budget leaves them with extra cash: eating out, coffee expenses, cable TV, land-line phone and internet.
Rebuild your credit:
How quickly you are able to rebuild your credit after bankruptcy will depend on the number of debts you decide to continue to pay after bankruptcy. Continuing to pay a mortgage or car loan after bankruptcy will not only allow you to keep your home or car, but will do wonders to your credit score Paying non-dischargeable debts, such as student loans, on time after bankruptcy will also help you rebuild the score. You can also rebuild credit by applying for and using a secured credit card after your bankruptcy discharge. A secured credit card establishes your credit limit to an amount that is at least equal to the amount of money you pledged as collateral on the account. In many cases, the credit limit can be higher.
You will be better able to recover if you adopt a positive attitude and are mentally ready to rebuild your personal finances. Instead of dwelling on the past, begin to save what you can, create an emergency fund, and investigate the various ways you can begin to rebuild your credit.
If you would like to learn more about the bankruptcy process and how to rebuild your credit after bankruptcy in Wisconsin, you can schedule a free bankruptcy consultation with a Milwaukee bankruptcy lawyer at Sapinski Law Office S.C. We have helped thousands of clients in the Eastern District of Wisconsin become debt free and restore their credit score after bankruptcy. Get a real fresh start! You can
reach our Milwaukee office at (888) 782-9423.