Four Quick Ways To Recover From An Illinois Bankruptcy
In board games like Monopoly, filing bankruptcy means you lose the game. Fortunately, the game of life (the real one and not the board game) is a lot more forgiving. Most people file bankruptcy because of job loss, serious illness, or other events that are beyond their control. But recovering from bankruptcy is different. You are fully in control of your own financial future. Well, at least for the most part.
A Financial Self-Assessment
Even if your car runs like a top, it still needs periodic safety inspections. Similarly, although the reasons for your bankruptcy may have been beyond your control, a financial safety inspection is always a good idea. The more storm-proof you can make your car, the better it will weather those financial storms. And the next one may be just around the corner.
Many people who have gone through bankruptcy, especially Chapter 13, had to develop some new financial habits. Be sure you hang onto what you have learned. DOn’t discard it just because your bankruptcy is over. Otherwise, you may be counting down the months until you can file your next bankruptcy, and that’s not good.
Stay Current on Secured Debts
If you just emerged from Chapter 13, your are current on your home mortgage, auto loan, and all other secured debts. Make sure you stay that way. Paying your bills on time is one of the fastest ways to rebuild your credit score. Conversely, late payments are one of the easiest ways to lower your score.
Consider making thirteen payments a year. You will not miss the extra $50 or so per month. That extra money builds goodwill with the moneylender. And, it pays down the debt faster, which can save you thousands of dollars.
Get a Credit Card
It may seem odd, but responsible credit use is one of the best things you can do. Charge something every month, and make a payment every month.
Some say it’s best to pay off the entire balance in full every month. Others say it is best to leave a small balance at the end of the month, so the bank earns interest. Try each approach and see which one raises your score the most. That’s not exactly a scientific approach, but it’s better than guessing.
Be Upfront
Tens of thousands of your neighbors file bankruptcy every year, and tens of thousands more put off filing bankruptcy. There’s no need to be embarrassed about it.
When you try to borrow money, the moneylender will find out about your bankruptcy soon enough. Before the creditor runs your report, say something about your prior filing. If you have a reasonable explanation for the bankruptcy, such as the aforementioned job loss, and you have been clean for the last 90 days, you may pay more than some other borrowers, but you will probably still get the loan. If that lender does not work with you, there are plenty of others who will.
Count on Dedicated Lawyers
A bankruptcy lawyer can give you a fresh start, and it’s up to you to make the most of it. For a free consultation with an experienced bankruptcy attorney in Chicago, contact the Bentz Holguin Law Firm, LLC. Convenient payment plans are available.
Resource:
nerdwallet.com/blog/credit-cards/credit-card-raise-credit-score/
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