Filing for bankruptcy is one of the biggest financial decisions you'll ever make. While the process requires some effort, what happens after bankruptcy is every bit as important.
Here are five tips you can follow to put yourself on the path to a full financial recovery:
- Review your credit report for accuracy: For example, make sure the debt included in your bankruptcy filing is noted as such on your credit report.
- Set a budget: Without a budget, you could find yourself facing financial trouble once again in the near future. Know your income, know your expenses and do whatever it takes to avoid racking up debt.
- Make payments on time: The easiest way to improve your credit score after bankruptcy is to make payments on time. For example, if you have access to a secured credit card, pay off the balance in full and on time every month.
- Don't rush: Even though you want to take steps to improve your credit, there's no hurry. A slow and steady recovery is the way to go.
- Watch your balances: Over time, there's the potential to slip back into your old habits. This can include maxing out your credit cards. Alongside your budget, keep close tabs on your balance.
If you're dedicated to making a full recovery after a bankruptcy filing, you'll soon find yourself on the right track.
By learning more about the bankruptcy process and your legal rights, you can make an informed decision as to whether it's right for you.
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