Despite what many people think, it is possible to recover after a bankruptcy filing. Your chances of a successful recovery depend on the financial decisions you make, and the level of Bankruptcy Assistance Indianapolis IN you receive. To safely and quickly recover from bankruptcy, follow the simple tips below.
Get your updated credit reports. Within the first few months after the finalization of your Bankruptcy Indianapolis IN filing, check your credit reports to ensure that every closed account or discharged debt is reported. You can get a free report each year from TransUnion, Equifax and Experian from annualcreditreport.com.
Protect yourself from another bankruptcy. If you find it difficult to stick to a spending limit, you can benefit by creating a budget. It is also wise to start an emergency fund, and it’s as easy as setting up an automatic transfer from checking to savings. If your budget is too tight to put anything away, consider taking a part time job to supplement your income.
Promptly pay your bills. The way you pay accounts for roughly 35% of your total credit score. Making payments on time will gradually raise your score, and doing so is an important step in bankruptcy recovery.
Use credit carefully. Your bank may offer bankruptcy assistance in the form of a credit rebuilding plan, or you can get a secured card by depositing a certain amount. If you go this route, choose a secured card that reports to the credit bureaus, and use your card only up to the amount you can pay on time each month. Doing this shows creditors that your spending is under control.
Consider getting a loan once your score improves. Rebuilding your credit score involves using credit responsibly. You can get an FHA loan just two years after declaring bankruptcy, as long as you meet certain qualifications. Some lenders may offer car loans before that time, but interest rates will be high. If you plan to get a mortgage in the foreseeable future, save enough for a sizable down payment.
A bankruptcy stays on your credit history for up to a decade, but its impact gradually diminishes. Bankruptcy is a story of your past, but your future is up to you–and the way you handle your finances from now on tells your creditors whether you’re a good risk. By using the methods above to bounce back from Bankruptcy Indianapolis IN, your financial future will be much brighter. Visit The Wright Law Group, LLC to get dedicated legal services for your bankruptcy cases in Indianapolis, IN.