Life After Chapter 7 Bankruptcy: Where Do You Go From Here?

18-Nov-2010 Sometimes bankruptcy is simply unavoidable. So once you've accepted that you've had to file for bankruptcy it's time to start looking ahead to the future. Many Chicago residents may find themselves at a loss for what to do after the bankruptcy proceedings are complete.

The beauty of filing for chapter 7 bankruptcy is that it gives you a fresh start. This is a rare opportunity to change you lifestyle and spending habits for good.

The first and most important thing you need to do to rebuild your financial standing is to get a copy of your credit report. Make sure that it reflects the debts you recently had discharged through bankruptcy. Immediately after filing for bankruptcy your credit score will be pretty low but continue to monitor your report over time and hopefully you will begin to see your score rise back up.

There are three agencies that prepare credit reports. They are Experian, Equifax and Transunion. You will want to see a report from each of these companies. It is in your best interest to write a letter explaining your reasons for filing bankruptcy. They will put this in your file and make it available to future creditors that review your credit report.

If you have any debt remaining that was not discharged during the bankruptcy process then it is vital that you make those payments on time. Once you've done this consistently for a few months reach out to your credit card company and ask them to re-age your account. This means they would take out any references to late payments made in the past.

Keep any credit cards that you have well below the limit. People with the highest credit scores us about 10% of their available credit.

The most important thing to do after filing bankruptcy is to analyze what actions you took that landed you in bankruptcy court. Understanding the behaviors that got you into trouble will help you succeed in the future. You do not want to fall into the same habits so create a budget and plan to get out and stay out of debt.

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.