After your San Diego bankruptcy attorney helps you through your personal bankruptcy case, you’ll probably feel liberated. Filing for personal bankruptcy is obviously not an ideal situation, but the financial relief that it can offer is substantial. The benefits of bankruptcy include:
- stopping creditor calls and contact
- regaining control of your financial future
- eliminating your debt
- having a fresh start
However, after filing bankruptcy it’s important to be careful. Once your San Diego bankruptcy lawyer has helped you discharge your debts, it’s important to take the necessary steps to rebuild your credit. Filing for bankruptcy puts a red flag on your credit report that will stay there for several years showing that you have filed for bankruptcy in the past. A personal bankruptcy on your credit report will significantly lower your credit score, but that doesn’t mean you won’t be able to get that score back up over time.
Rebuild Credit after Bankruptcy
To rebuild credit after Chapter 7 bankruptcy or Chapter 13 bankruptcy, it’s important to create a budget that you can stick to. A budget can help you see how much you actually spend on a monthly basis and give you a guideline to try and reduce your spending and actually start saving money. Having a savings account that you contribute to regularly is a great way to ward off future debts. A savings account can be a first step towards retirement, a college fund, or an emergency fund when unforeseen medical bills or a job loss occurs.
To actively start rebuilding your credit after bankruptcy, you’ll want to obtain a credit card. It’s important to choose a credit card that has reasonable terms and a low interest rate. It might be hard to find a good credit card that you can get approved for after filing for bankruptcy. If this is the case, consider taking out a secured credit card. A secured credit card, like a debit card, draws from funds that you add to an account in advance. This means that you can only put as much on your credit card as you actually have available. A secured credit card is a good way to avoid racking up credit card debt while also showing that you can be responsible with your money.
Another great way to rebuild credit after bankruptcy is to take out a small loan. A car loan, home loan, or business loan that you are able to keep up with and make regular payments on can have a significant positive impact on your credit score after filing for bankruptcy.
Speak with an Experienced San Diego Bankruptcy Lawyer
To learn more about life after bankruptcy, speak to a San Diego bankruptcy lawyer who has handled thousands of cases in California. Scott Orona has been serving as a bankruptcy attorney for over 20 years. Attorney Orona’s San Diego law firm has helped all sorts of clients get through the often daunting process of filing for bankruptcy. Call 619-306-7627 today to learn more about the benefits of bankruptcy and whether Chapter 7 or Chapter 13 might be the right choice for your situation. You can also contact his office to arrange your free one hour consultation at any time.