Once your Chapter 7 bankruptcy is discharged, it's important to avoid making the same financial mistakes. After all, you don't want to file bankruptcy again in the future. Since most of your debt has been erased, you should be in a better position to pay your bills, but that doesn't mean you can't still get into financial trouble.
What You Need to do After Your Bankruptcy is Discharged
The first thing you need to do after your bankruptcy is discharged is make sure to keep track of your spending. You should focus on making all of your payments on time, and begin to save money. Although obtaining new loans can help raise your credit score, you need to be careful not to take on too much new debt, or you'll wind up back in the same situation you were in before your bankruptcy.
Next you should re-run your credit report to make sure that former creditors are not violating the discharge. Most of the time, violations are simply an oversight, but sometimes a creditor will continue trying to collect on loans. Re-running your credit report also makes you better prepared to obtain new loans, because you will know your post-bankruptcy credit score.
Rebuilding Your Credit After Chapter 7 Bankruptcy
Once you can meet all of your financial obligations after Chapter 7 bankruptcy, and start saving money, you should work on rebuilding your credit. You will probably begin to get offers from companies to fix your credit by giving you a new identity, or giving you a secured credit card. Make sure to avoid these scams, and rebuild your credit by obtaining financing after bankruptcy, such as auto loans, that you can easily make the payments on.
If you're ready to get started rebuilding your credit, BankruptcyAutoFinancing.com is here to help. Simply fill out our easy online application, to see how much of an auto loan you could be approved for. We have a network of nationwide lenders that have all the tools and experience to help you start building a brighter financial future.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.