What Happens After The Bankruptcy?

When we lived in California, we had a friend who was an Oakland bankruptcy attorney.  He frequently spoke of how his clients were so completely interested in all the "how to's" of filing for bankruptcy, and yet, not many were interested in what to do after the bankruptcy.  For the most part we all need to build credit, but this is especially true of someone who has filed for bankruptcy.

The first thing you need to do is gain some credit.  If you want to rebuild your credit, you need credit.  Look for and establish accounts that will report positive information on you.  If you pick up a credit card account, be very careful with it.  Use it sparingly.  Always pay the entire balance every month before the due date.

Paying on time is extremely important.  Credit cards will report late payments to credit reporting agencies.  Even your utilities, if paid late, will report negative information for your credit report.  Potential lenders will see you as a poor credit risk if they see that you continue to make payments late month after month.  In addition, most credit card companies have a substantial late fee when payments are not received by the due date.  Avoid these late fees and the negative hits to your credit report by paying your accounts in full before the due date.

Filing for bankruptcy doesn't end when it's filed with the court.  It is important to work on re-establishing your credit afterward.

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