So the decision to seek help from the Kepple Law Group turned out to be the right one. With the discharge about to happen, you can start thinking about the future. What will things be like once you have that discharge? You have the chance to lay a foundation for a future that’s free of more financial difficulties. Here are some examples of what you can do to start building that new life.
Check Your Credit Reports
Once there’s been enough time for the discharge to show up on your credit reports, order a copy of each one. Your goal is to ensure that all of the obligations that were included in the petition are not marked as discharged and show a zero balance. If any of those debts still show as open, you will want to work with the credit bureau to change that. Copies of your bankruptcy documents, including the discharge, will often be enough to get everything updated. That will come in handy when the time comes to apply for new credit.
You Continue to Live Within Your Means
Remember the financial and debt management courses that you had to take to comply with the bankruptcy court’s instructions? You’ve already been using what was learned while the bankruptcy was pending. Now is the time to swing into full mode and really make the most of that information.
If you haven’t already, create a budget that allows you to live on a percentage of the net income that you generate each month. That will likely mean continuing to set aside funds for basic living needs first and delay making purchases that you can do without for a time. This approach will allow you to build up the balance that you maintain in your bank accounts and provide something of a financial cushion.
While Building Up Your Cash Reserves
Your personal bankruptcy lawyer probably talked with you about creating cash reserves for the future. This is something else that you can dive into now that the bankruptcy is over. Along with the money that you keep in a checking account, establish some sort of savings account that’s designated as your emergency fund. That fund is not to be touched for anything other than a real need. In the event that the car needs repairs or one of the major kitchen appliances needs to be replaced, you can draw on those cash reserves. Think of what that means in terms of avoiding the accumulation of credit card debt.
There’s a Chance to Begin Improving Your Credit Score
You’ll also want to look into ways to incrementally improve your credit score. At first, it won’t be that great. Within a year, your scores should be better. That’s especially true if you focus on rebuilding your credit in a responsible manner.
As a rule, avoid securing store credit cards. Along with the hard inquiries that lower your already low scores, they won’t serve you as well as cards that you can use anywhere. Stick with a single card and pay off the balance every billing period. The positive comments will help offset the older negative ones.
Small loans are also good for rebuilding credit. Make sure that the lender reports to at least two of the three credit agencies and pay off the loan on time. That will also go a long way toward boosting your score.
Are you wondering if a Chapter 7 bankruptcy would help you get back on your feet? If so, call the Kepple Law Group today and ask for a free 30-minute consultation with Casey Kepple. It won’t take long to determine if this is the best way to plan for a life that’s not encumbered with crushing debt.