Steps to Take After Bankruptcy
You've filed for the personal bankruptcy, and the bankruptcy courts finally approved your case. Your debts are officially eliminated from your life - and you are debt-free for the first time. However, before you throw your hands in the air and celebrate your clean financial slate, you will need to take certain steps to get your finances back on track after personal bankruptcy.
So what are these steps? Read on to find out more:
Take a Massive Sigh of Relief
Yes, this step might seem like common sense - but there's no denying that you need a little space to breathe and process what you've just been through. Bankruptcy is an emotional, mental, and physical journey - and once you've finally reached the light at the end of the tunnel, you'll need some time to process.
Take this time to absorb the financial lessons that got you to the point of bankruptcy in the first place. What happened that made you end up in this situation? How can you prevent it in the future? What lessons can you apply from your credit counseling classes? Reflecting on this will help you prepare for the next steps in your financial journey.
Check Up on Your Credit Reports
Once you've taken the time to process what you've just learned, it's time to order copies of your credit reports. The purpose behind this is simple: you'll want to ensure that any and all debts were eliminated from the bankruptcy. Credit reports can contain a great deal of errors, so doing this will help ensure that your credit score isn't artificially deflated by accidental errors and mistakes.
Reaffirm Your Car Loan
Many Chapter 7 and Chapter 13 bankruptcies will allow you to keep certain assets, including your primary car. If you managed to keep your car loan, you'll want to reaffirm it as soon as possible. Re-affirming your car loan tells the car dealer that you still want your vehicle, and you fully intend on making all payments. Think of it as a fresh start loan without the hassle of going through a credit check.
Before you reaffirm the car loan, be sure that you're getting the best interest possible. You may think that you have to suffer with sky-high payments, but the truth is that buying a cheaper car may end up with a cheaper payment altogether.
Remember to ask your bankruptcy attorney for advice before you try out any of these steps.