Post-bankruptcy: Now what?

Going bankrupt is a shameful state to be in. Having to file for bankruptcy is a thing we all hope never to face in our lives. There are a number of repercussions to go through when you consider filing for a Bankruptcy. But it doesn’t mean that your life, career or financials can never be recovered. There are a number of ways one can recuperate from the setbacks caused by bankruptcy and plan ahead of time to never be in that position again.

Bankruptcy Paperwork
It is of great importance that you keep copies all the documents, paperwork, bankruptcy petition, order of discharge as a record for future. These may come handy if you go bankrupt the second time.

Check Your Credit Report
It is also recommended that you keep a check of your credit card report every few months after you receive your bankruptcy discharge. A free copy of the report can easily be retrieved from the credit reporting agencies. This will help you keep note of all the discharged debts and check for any discrepancies.
Payment of Non-dischargeable debts
In case you have any in-disposable debts such as student loans(less then 7 years) you may need to make arrangements with the creditors on how to pay them. Student loans usually receive forbearance for the time you were insolvent. Other programs such as income-based repayment can also be opted to lessen the burden of debt.

Rebuild your Credit
If you want to rebuild your credit rating, obtain a secured credit card. It uses the money deposited in a bank as surety for the credit card. It is much easier to attain as some creditors don’t even require a credit check before offering a secured card.
But keep in mind not to use more than 10% to 20% of your available credit. This means that if you have a limit of $1,000, don’t use more than $200 at one time. The purpose is to rebuild your credit rating so be responsible. If you plan to buy a house and paying less 20% down-payment, CMHC required two credit cards with minimum $1,500 limit.

Timely payments for house
Simply continue to make them monthly mortgage payments if you didn’t reaffirm your home mortgage loans and plan to keep it. But remember, the bank still has a lien on your home; meaning it can foreclosure if you fall back on your mortgage payments.

Timely payments for vehicle
If you wish to keep your vehicle along, keep paying the monthly installments. The lender can reclaim if you fall behind on your payments.

Update Your Will
It is advisable that you review your will after the whole bankruptcy episode has finished. In case you don’t have one yet, consult credit counselor or Trustee

Savings plan
Pay yourself first. Even if it is a matter of few dollars per day, keep it saved for unanticipated emergencies. It may seem insignificant or worthless at the moment but even the smallest amounts can add up to cover expenses in the longer run.
These may seem like things easier said than done, but if you keep an account of all these details you are ensuring yourself a secure financial future.

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