After Bankruptcy

In a society where credit is used as frequently as air itself, what will you do after your bankruptcy is discharged? Have you already considered the changes you will need to make or do you have a plan at all?

What to Expect

The chances are you will stripped of all credit unless you and the lender have agreed to reaffirm your account, but in most cases your credit is gone. The "buy now pay later" days are behind you, you will be living on a cash system for a while. Here are a few suggestions that might help you get started on a cash system.

Debit Card - can be used as a credit card except the cash in your account is your buying power.
Pay Cell Phone - pay as you go. Eliminate high monthly fees, only pay what you use and keep the convenience of a cell phone.
Budget - it's time to start a budget. You can look at raising the deductible on your car insurance, eliminating some services on your phone bill, use energy saving light bulbs and the list goes on. The point is you need to balance your budget if you haven't already.

If you fall back into the old habits remember that you cannot file chapter 7 for another 8 years. We know you don't want to relive all those headaches that debt created before.

What Will be Affected?

If you need car insurance your rates will be higher.

Auto loans - you can get a loan, but expect high rates.
Jobs - some jobs require credit checks, this could prevent you in these cases.
Housing - usually 2 years after a bankruptcy you will qualify for competitive rates.
Renting - can hinder your approval for a rental.

The day after your discharge you can start to reestablish your credit with a secured credit card from a bank. Expect a higher interest rate for a while, but keeping the account in good standing will get you an unsecured card within a year.

Check around with different credit repair agencies to see what assistance they can provide you with. The credit agencies make numerous mistakes and having these removed can help in your recovery.