After you’ve filed for bankruptcy in Worthington, MN, your credit will be damaged, but it won’t ruin your financial future forever. Listed below are several tips the attorneys at Behm Law Group, Ltd. would like you to consider to help you rebuild your credit and life after bankruptcy. Remember, if you’re contemplating bankruptcy, the compassionate professionals at Behm Law Group, Ltd. can help you with your decision by providing solid answers to your questions and concerns.
- Create a budget to help you stay on top of your finances. The attorneys at Behm Law Group, Ltd. recommend . Non-profit credit counseling agencies offer free basic consumer help on topics such as budgeting. Simple budgeting forms can be downloaded from the Internet, too.
- Begin building an emergency fund, even if it’s just a small amount at first. Research by the shows that having as little $250 in savings for an unexpected expense can protect families from resorting to payday loans or running up credit cards, which can start a new debt spiral.
- Cautiously apply for a credit card. Try to obtain either a secured or unsecured credit card, and make sure to repay the entire balance every month. Doing this quickly establishes a timely payment history and improves your credit. Do not fall into the trap of obtaining too much credit.
- Repair your credit. It’s unusual for your credit report to be 100% accurate following a bankruptcy, and some of your debts may not indicate that they were discharged in your bankruptcy. It‘s the creditor’s responsibility to update your credit reports to show that your discharged debts have a zero balance, but you obtain the best results if you dispute incorrect items on your credit report. The three major crediting reporting agencies offer free credit reports annually.
- Open a new bank account. Opening a new checking or savings account will demonstrate financial stability. It can also give you a fresh slate to practice good financial habits. When you open your account, talk to the banker about signing up for automatic online bill pay. This will ensure that your bills are paid on time, which is a major factor in rebuilding your credit score.
If you have questions about what your life in Worthington, MN, will look like post-bankruptcy, give Behm Law Group, Ltd. a call at (507) 387-7200. We’re standing by to assist you with all aspects of filing for bankruptcy.