Life after bankruptcy

Bankruptcy is all about getting a fresh start. This is a collection of ideas for your financial life after bankruptcy, to cushion the impact of the bankruptcy, and to help you rebound.  

None are magic:  they are practical, step by step ways to regain your financial footing.  They focus, not on your credit history, but your financial present.

  • Join a credit union.  Credit unions are a likely source for car loans after bankruptcy. Their mission is helping members financially.
  • Put the money you have been spending to make credit card minimum payments into a savings account for yourself. For fun, use this calculator to see how much you could save by something so simple as bringing a bag lunch.
  • Have contributions to a savings account or retirement plan automatically withdrawn from your paycheck. Save it before you see it.
  • Check your credit report to make sure the discharged debts are noted as discharged. More
  • Understand how expensive credit can be.
  • Get a single credit card, use it sparingly and pay it off every month.
  • Teach your children about money:  help them distinguish "wants" from "needs".  Help them see that the commercial world tries to manipulate them into spending rather than saving. More on kids and money.
  • The stronger and cleaner your present financial condition is, the better candidate you are for future credit.  Work to focus attention of lenders on how you have handled money since the bankruptcy. Keys to better credit.

Avoid "credit repair"

There are lots of scam artists who prey on debtors' concern about their credit reports and will take your money to "fix" things.  There is nothing legal a credit repair organization can do that you can't do yourself.

You need to know that credit reporting agencies are entitled to report truthful, if unpleasant, financial history.  You have rights to have removed the inaccurate and to comment on the disputed. More on improving your credit report.

Learn more about your rights to fair credit reporting and avoid scams:

        Your rights under the federal Fair Credit Reporting Act

        Do it yourself  tips on monitoring your credit report