Tips for Handling Credit After Your Schaumburg Chapter 7 Bankruptcy is Discharged

Everyone who files for bankruptcy must attend a financial management course prior to his or her discharge. During this course, you will learn valuable skills that will help you budget your money and plan your finances for the future. In addition to teaching you how to plan a budget, the counselor will show you how to set financial goals, manage your checking account and prevent identity theft.

Whether you file for bankruptcy due to excessive medical bills or unmanageable credit card debt, it is important to use the skills you learned in your pre-discharge counseling to begin re-establishing your credit as soon as possible after your bankruptcy is discharged. The sooner you get a new credit card and begin proving that you can handle your credit responsibly, the sooner you will be able to get a credit card with a reasonable interest rate and a mortgage for a new home.

Fortunately, many lenders and credit card companies are happy to extend high-interest credit to people who have recently had a bankruptcy discharged. After you have completed your Schaumburg Chapter 7, you will have fewer out-of-pocket expenses and more disposable income every month. When you get a new credit card or car loan, though, it is very important to make your payments on time every month.

While it is important to apply for at least one credit card soon after your Schaumburg Chapter 7 bankruptcy is discharged, it is vital that you do not overextend your finances. You’ll have to consider the high interest rates for your new credit before you charge purchases that you cannot pay off when the statement is due. Carefully managing your finances and paying your balance in full every month can help you avoid interest charges and steadily increase your credit score.

If you have questions about how bankruptcy can help you out of your financial troubles or you are ready to file for Chapter 7 or Chapter 13 bankruptcy, an experienced law firm such as Ledford and Wu and help you get through the court process and bank on your way to a secure financial future without overwhelming debt.