LIFE AFTER BANKRUPTCY
LIFE AFTER BANKRUPTCY
If you are unable to pay your monthly bills, you will continue to make late payments and further damage your credit rating. While filing for bankruptcy may have a short-term effect on your credit rating, it places you in a position to improve your credit in the long term.
Obtain a Credit Card
By filing bankruptcy now, you begin the process of financial recovery. There are a number of ways to improve your credit. One of the ways is to obtain a secured credit card or debit card. A secured credit card is a credit card that is guaranteed. You should use it sparingly because it is important for you to make your monthly payments on time. Your credit rating will improve as you continue to maintain a positive payment history. Many clients are surprised at just how fast they can improve their credit rating after they have filed for bankruptcy.
Correct Errors on Credit Report
While bankruptcy eliminates or reduces your obligation on the debt, you may find that some of the discharged debt still remains on your credit report. Creditors furnish information, such as payment history and balances, directly to the credit reporting agencies. Some creditors report the information frequently, others do not. It really depends on the creditor, so the information on your credit report may not be current. You should take steps to correct your credit report so that it accurately reflects the current status of your debt following bankruptcy.
Make a Budget
Make a list of your expenses and subtract that amount from your take-home income. This will give you an idea of how much money you will have left over after you make all your monthly payments. It can also prevent you from spending money that you do not have. If possible, try to cut back on your expenses and put a portion into a savings account. Like most things in life, anything worth having requires discipline.
Bankruptcy Experience That Works for YOU
Attorney Nella F. Mariani has more than a decade of experience in bankruptcy, debt relief, and bankruptcy litigation. Her practice focuses exclusively in bankruptcy and debt relief matters. She works closely with each client and provides them with a high degree of knowledge, professionalism, and sensitivity.
If you need to speak to an experienced Illinois bankruptcy attorney, contact the Law Offices of Nella E. Mariani, P.C. to schedule your FREE CONSULTATION