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Life After Bankruptcy: How to Repair Your Credit after Filling for Bankruptcy

People often find themselves so deep in debt that they can’t find their way out. This is when the last resort comes into play. Filing bankruptcy destroys your credit for many years to come. Seven years in fact. The only way to avoid thoughts of bankruptcy is to keep your credit in good standing to start with.

There is life after bankruptcy though. You don’t have to spend the rest of your life in the shadow of this dreaded financial downfall. Filing is one of the hardest financial decisions to make. Once you have made the decision to file bankruptcy, you should know what life will hold for you afterwards.

Here are some of the ways that life is affected after you have filed bankruptcy:

Credit Report

This will show on your credit report for about seven years following the time that you filed. This affects every attempt you will make at getting credit for things such as car loans, home loans and credit cards. The good news is that there are credit card companies that will give you a second chance. You can establish a good credit rating by obtaining these cards. You must learn first how to manage debt then you can move forward.

Once you have obtained these credit cards, be aware that they will come with a much higher interest rate. The rules will be very strict and the limits very low. Be very careful not to overspend. Use these cards for small purchases that you can pay off when the bill comes in. You can’t file bankruptcy at your convenience. There are rules that go along with it. You will not be able to file bankruptcy again for many years. Keep yourself out of deep debt and you should be able to rebuild a decent credit rating by the time the bankruptcy comes off the report.

Jobs

Many potential employers check credit ratings to determine whether or not they will hire you. The idea behind this is that the report can show trustworthiness. A bankruptcy won’t look very good to them. It shows that you can’t fulfill your obligations in your personal life and therefore wouldn’t make good business decisions. Unfortunately, there is nothing that you can do about this.

Insurance

Insurance companies are well-known for checking credit reports to determine your premium. When it comes time to renew, there is a chance that the amount of money you pay to them will go up. Again, your credit report shows trustworthiness and insurance companies want to know that they are making a good investment by insuring you. Carelessness with your personal finances tells them that you would also be careless in your every day life. This may not be accurate but that is how they look at it and that is all that counts.

Bankruptcy puts a cramp in the things that you want to do in life. It can have a major impact on things that you may not even think about. There is hope though. Keep yourself out of financial troubles in the future. Be careful how you spend to include avoiding impulse spending. Keep a close eye on any credit that you are extended prior to the seven year waiting period. Make sure that you pay your bills on time. When those seven years are up, you get a chance to start over. This is your big chance to make a difference in your own life.

It is not at all easy to handle bankruptcy issues because once the credit history is tarnished there is little that can be done to put things back on track and you are constantly harassed by the San Diego bankruptcy lawyer so in order to prevent that from happening, you will need to repay the credit by focusing more on your bills and once the time period is over, there will be a new beginning where you can start everything afresh with a new leaf and do make a pledge to pay everything on time from now on so as not to get into the bad books of creditors.