Life After Bankruptcy

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NJ Bankruptcy 911 Checklist

Life After Bankruptcy

 

The good news is that yes, there is life after bankruptcy! Like other setbacks in life, you can make a recovery. There may be different paths to recovery for each form of bankruptcy, but there is always hope!

Rebuilding your life after bankruptcy — including your credit rating and finances —  can sometimes seem like an overwhelming task, but it doesn’t have to lead to a life where you’re treated like a financial outcast and banished to years of credit exile. To that end, please consider the NJ Bankruptcy 911 Checklist for Life after Bankruptcy.

 

 

1. The most commonly asked question I get when I consult with a new client is,
It is on my credit report for 10 years, right? or
I cannot get credit for 10 years, right?”

The good news is that there is life after bankruptcy and no, it does not take 10 years before you can rebuild your credit!  In fact, for a lot of people filing bankruptcy is necessary in order to rebuild their credit.  Why, you might ask?Well, how can you rebuild your credit without first wiping out the debt you already have?  For example,if you make $40,000.00 a year, how can you rebuild your credit if you are carrying $25,000.00 worth of debt? Many people attempt to consolidate their debt prior to filing for bankruptcy only to find out they have paid thousands of dollars before realizing they need to file bankruptcy because in 99.9% of cases debt consolidation or debt settlement simply does not work.

2. Note that your credit score will increase within the first year after filing for bankruptcy.  After bankruptcy you will want to begin applying for secured credit cards.  My clients have advised me that the credit card companies begin soliciting them directly after they complete their bankruptcy. These are credit cards which you prepay for so that you can use them as a credit card.  This will assist you in rebuilding your credit score.  Just remember to be cautious as many of these credit cards charge annual fees and monthly charges

3. You should open a savings account after filing for bankruptcy and begin saving some money.  Remember that you should always pay yourself first.  Set amount to have deposited directly from your paycheck into your savings account. You need to try to forget you have the account. Some people find it helpful to open an online savings account such as, ING Direct, as it is more difficult to dip into the account on a whim.

4. Be sure to pull your credit report regularly.  You should pull one free credit report per year from the 3 major credit bureaus.  You can do this at annualcreditreport.com.  It is recommended that you pull one report every four months so that you are continuously checking your credit reports throughout the year.  Be sure to review the credit report very carefully and dispute any information that is incorrect.  You can dispute any incorrect information online or through the mail.  You should be sure that any debt you had that was listed in the bankruptcy is marked as discharged debt on your credit report once you have completed your bankruptcy.

5. It is possible to buy a car and even a home after filing for bankruptcy.  You should initially expect higher interest rates when you apply for credit cards, cars and mortgages.  The more distance you get from the bankruptcy the better the offer on interest rates for consumer purchases.  Remember never to take out adjustable rate loans of any kind.  Always opt for a fixed interest rate loan whether it is a mortgage, student loan, or a personal loan and never ever cosign for anyone.

6. Always, always pay your bills on time.  Paying ahead of due dates can assure you do not forget to pay the bills on time.  Be sure that if you pay your bills through your checking account’s online bill pay option that you account for the time it will take for the payment to post.

The most important thing to remember when rebuilding your credit is to be very careful not to fall into the same situation again.

Call 911 for your New Jersey bankruptcy emergency

NJ Bankruptcy Lawyer, Virginia E. Fortunato
One Kinderkamack Road

Hackensack, NJ 07601
201-673-5777

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  • […] The good news is that there is life after bankruptcy and no, it does not take 10 years before you can rebuild your credit!  In fact, for a lot of people filing bankruptcy is necessary in order to rebuild their credit.  Why, you might ask?Well, how can you rebuild your credit without first wiping out the debt you already have?  For example,if you make $40,000.00 a year, how can you rebuild your credit if you are carrying $25,000.00 worth of debt?  Many people attempt to consolidate their debt prior to filing for bankruptcy only to find out they have paid thousands of dollars before realizing they need to file bankruptcy because in 99.9% of cases debt consolidation or debt settlement simply does not work.Source: njbankruptcy911.com […]

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  • […] […] […] […] The good news is that there is life after bankruptcy and no, it does not take 10 years before you can rebuild your credit!  In fact, for a lot of people filing bankruptcy is necessary in order to rebuild their credit.  Why, you might ask?Well, how can you rebuild your credit without first wiping out the debt you already have?  For example,if you make $40,000.00 a year, how can you rebuild your credit if you are carrying $25,000.00 worth of debt?  Many people attempt to consolidate their debt prior to filing for bankruptcy only to find out they have paid thousands of dollars before realizing they need to file bankruptcy because in 99.9% of cases debt consolidation or debt settlement simply does not work.Source: njbankruptcy911.com […]Source: njbankruptcy911.com […]Source: njbankruptcy911.com […]Source: njbankruptcy911.com […]

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