After the difficult and complex process of bankruptcy, debtors often wonder when they will stand back up on their feet again. Despite how bleak your financial condition might seem with some good planning and time you can once again be financially secure. After filing for bankruptcy, your credit rating would definitely be affected, but there are things you can do to once again establish your credit.
Since the Bankruptcy Code and the Fair Credit Reporting Act are federal laws, the period during which bankruptcy details will still be included in your credit report is constant for all states. A consumer credit report that store information about bankruptcy for 10 years. The fact is that it takes about 18 months of paying your bills on time to re-establish a good credit rating which would prove that you can manage your finances sensibly. For those who have filed for bankruptcy, re-establishing credit would be an even more difficult task. However, it is possible to have good credit ratings once again.
The first and most important thing to do is to get a job. For a start, even a part time job will be sufficient. The purpose is to create a steady work record as soon as possible. You have to also have to obtain credit records from the three credit bureaus. Once you have your credit report, ensure that all the information on it is correct and you can send in a 100 word statement that give good explanations for your situation, if at all you had a problem.
Additionally, as soon as your credit card debts are paid, you need to get rid of all excess credit cards. That means you can keep only the essential one or two credit cards. By doing so, you are putting on to record that you have it in mind to use credit more cautiously from now on. If you are applying for credit cards, do not apply for too many at a time, and it would be a good idea to apply for a credit card with a local store or bank. However, if you are not able to obtain a regular credit card, you can apply for a secure credit card.
At the same time you should also open a savings account and make regular deposits to it. It is also essential that you pay your bills on time in order to ward of building up of debt and bad credit. By opening a checking account and making sure none of you checks bounce you will be showing that you are able to maintain your finances responsibly.
You can apply for one from your bank or a credit union. Once you get your loan, make sure you make all the payments on time or, even before time, if possible. Before you do so, however, you should check if this organization reports all transactions to credit bureau since not all organizations do so.
That paying of debt and maintaining a good credit rating is not easy is not news. So in such a scenario, you should keep communication channels open with your creditors. Running away from them will not help you; in fact, they might have advice to give you in how to efficiently pay back your debts. After having spoken to them, you need to prioritize your payments. Payments for necessities such as groceries, rent, heat etc should be on top of the list with other pays that affect your credit rating next. At the same time, pay off the debts with the highest interests rates first.