What to Do After Your Bankruptcy Discharge
Congratulations! Now that you have completed your bankruptcy, you can have the fresh start that you so justly deserve. You now have the ability to say, "It doesn't matter what happened to me before, it-s what I do with my future." This section will give you tools and strategies to get you started on the right track of rebuilding credit and saving for the future so you can be successful in life and accomplish what you want. Now that you have a fresh start, this information will help ensure you never have to file again.
Rebuilding Your Credit
You have had your debt discharged; what will now determine whether you can get that first new purchase, whether you can have a high credit score again, is what you do the second you exit that bankruptcy. The best way to do this is to get a secured credit card, which is a card that requires you to put money in an account ahead of time. You can start with as little as $500, which you pay to the secured credit card company. They hold that money, and when you make a purchase, they take it out of the money they are holding. The report your purchase as a real credit card transaction, telling the credit bureau that you made a charge and paid it on time. This allows you to create positive financial history without actually using a credit card. If you do this responsibly for the first six months after bankruptcy, you will see a huge jump in your credit score. The average is fifty to one hundred points!
From here on, make smart choices. Research options before you make purchases. Ask around. Do not just assume that you have to take a bad deal because of your bankruptcy. Do your homework. Ask for multiple quotes. Figure out what you are doing. Make sure that if you-re buying a car, for example, that you understand all the consequences of the financing. If you are buying a home, make sure you fully understand the mortgage options.
Major Medical Insurance
A main reason that people file for bankruptcy is medical debt. Now is the time to get insurance to help cover expenses should you become ill in the future. Very few people can weather the storm of a major illness. It can devastate you financially due to the vast expenses of medical services and treatment. Be prepared with insurance. Most single people and young families can find a major medical policy for $100 to $150 per month. These plans will come with high deductibles (which are even higher for families) and co-payments, but a $2,500 to $5,000 debt will be easier to overcome than a $10,000 or $25,000 debt.
It doesn't matter happened what happened that made you file bankruptcy. Focus now on rebuilding your credit to make sure you get a fresh start and the help that you need.
