Life After Bankruptcy

Hundreds of years ago people who couldn’t pay their debts were imprisoned and sometimes even sentenced to death, but these days there is life after bankruptcy.

Life after bankruptcy is all about starting over and reestablishing what was lost in a time of financial indiscretion.

These days lenders realize that irresponsibility is not the only cause of bankruptcy. With more people hard hit by the exorbitant costs of healthcare, education and homeownership bankruptcy has become a reality even for the financially prudent. For this reason more and more lenders are taking a chance with high-risk borrowers offering credit, loans and mortgages to people who have experienced a bankruptcy.

Credit, loans and mortgages after bankruptcy can provide the perfect means for a previously bankrupt individual or company to reestablish their credit and overcome the stigmas that are associated with bankruptcy. Paying off all credit card bills and loan payments promptly and in full can lay the foundation for a new attractive credit history.

Tips for Life After Bankruptcy:

  • Obtain a copy of your credit report and make sure that it is accurate
  • Make sure that if you have paid off all of your creditors that your report states this
  • Save as much money as you can in a savings account
  • Try applying for credit cards that are easy to get. Usually department stores and gas stations are a good place to start. You don’t necessarily have to use them, but having them and making the necessary payments will offer you a degree of financial credibility.
  • Join a credit union. Credit unions may be able to offer you loans when other financial institutions turn you down.
  • Spend wisely and organize a budget so that you can anticipate the money you will have to put towards bills and loan payments as well as living expenses each month.