Bankruptcy Doesnt Have to Be the End

By: Williamblake
You may have had to file for bankruptcy because of events that have affected your financial circumstances. Bankruptcy, however, is not the end. .

Deciding to file for bankruptcy is not easy. But many people have had to and are now able to care for their finances stably. You can dust yourself off and get back on your financial feet even after bankruptcy.

All damage done to your credit by the bankruptcy process can be healed. Chapter 7 bankruptcy eliminates all of your debts, and some of your assets. Afterwards, building up your credit again is dependent on you paying your bills in a timely fashion.

Be responsible with what you still have left. You still have your home. Make utility payments on time. Establishing a record of timely payments is one way to work towards fixing your credit.

Secured credit cards, credit cards that require that a deposit be made by the individual applying for the card, can also help you reestablish credit. As you use your secured card, you will build your credit and eventually be able to qualify for an unsecured card.

Keep just one credit card. And don't charge purchases on it needlessly. Simply having a credit card that can be used in emergencies is a way to build back your damaged credit.

Train yourself to pay for everything in cash. Unless you have cash to back up a purchase, don't buy anything; this could be one reason bankruptcy was filed in the first place. Going back to using cash is a healthy way to build up a bank account and savings account balance.

Plan to succeed. Since you have already experienced bankruptcy, you know you don't want to go through the process again. Establishing a good savings plan that includes an emergency fund will help you prevent any future need to file for bankruptcy. Credit card payments shouldn't present any kind of problem after having had all of your debt eradicated.

Once you get that first credit card, companies will start hounding you. Don't give in to them. Be flattered, but resist the urge to get started with the credit card debt cycle again.

Discipline yourself to live within your means. This includes saving for a rainy day. Consult a financial advisor or go to credit counseling. Credit counselors can give you information about money management and spending tips.

Financial advisors might also help you by forming a savings account that you can later use to invest. Since retirement often continues for upwards of twenty or thirty years, saving and investing wisely in essential. While you work at rebuilding your credit, keep your focus on saving for retirement.

Bankruptcy is not the end by any means. Recovery is possible, but only with hard work, patience, discipline, and time. If you stay with your plan, you will be able to enjoy a financially secure future.
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