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(Last Updated On: September 17, 2019)

Filing for bankruptcy is difficult. It’s not just the fact that you have to go through the hard process of recognizing and accepting that you’ve reached a hard point in life, but also that you have to figure out how to work your way out of a tough financial situation.

That’s why it is crucially important to have a plan. If you know you’re going to be filing for bankruptcy and if you think that could be a possibility in the future, or frankly, even if it doesn’t seem like it could ever happen to you, having a plan is always a good idea.

Take a look at the following suggestions and strategies to fix bad credit and move forward with wiser financial decisions.

1. Take Time to Figure Out How You Went Bankrupt In The First Place

Understanding why this happened in the first place will help you know how to proceed. Did you file bankruptcy because you were between jobs and couldn’t make ends meet? Or was it because you couldn’t manage your debt? If the root of the bankruptcy isn’t addressed, nothing will change in the long run.

2. Plan How You Want to Build Up Your Credit

Take time before you start applying for CPN loans right away. Going into debt right after bankruptcy isn’t smart. There are options out there for people with bad credit, such as a secured credit card. Figure out how to manage your cash flow before piling on any type of debt. 

3. Pay Attention to Your Credit Report

Before applying for or taking out a loan, be extra aware of the details on your credit report. Look for discrepancies and dispute any you find. You’re already going to be in a tricky place with your credit score after bankruptcy; you don’t need additional, false information and statistics making it worse. 

4. Keep Track of Your Bankruptcy Papers

Put them somewhere safe because you never know when you might need them again. You can use them as proof that you’ve paid off existing debts, and they’ll also be needed when you apply for a larger loan—or maybe for a house or car—down the road. 

5. Work With Your Bank

Talk to your bank, maintain a personal relationship with them. Tell them why you went bankrupt, why filing for bankruptcy was necessary, and why it won’t happen again. This way, you become more than a bankruptcy case; you add a human element that personalizes your experience. 

6. Be Cautious About Borrowing Money

Your credit score plummeted when you filed for bankruptcy. If you take out a loan and don’t make your payments on time, your score is going to continue to suffer. Be very certain you can pay your loan off if you decide to take one out. 

7. Be Careful Who You Borrow From

It’s usually pretty easy to find CPN loans after filing bankruptcy. That’s because lenders will know that you have more money readily on hand than when you were in debt before the bankruptcy. But watch out for high-interest rates. And take your time looking around at your loan options. Try to find someone who will offer you a competitive rate. 

8. Create And Stick to a Budget

Know how much money you have coming in and where it’s all going. Create and stick to a budget. Know your finances inside and out and you’ll be better prepared to take on a loan. 

9. Form New, Better Habits

Making your payments in full and on time is a big deal. But don’t overextend yourself. Be cautious about racking up too much debt. Establish new limits and operate within them, and your credit score and spending habits will improve. 

10. Be Realistic

Try to think about your bankruptcy as a business decision rather than an emotionally-charged issue. If you approach it from a business standpoint and learn all you can from the experience, you’ll come out on top.

Don’t be caught off-guard by financial hardships! Have a plan in place and bankruptcy will fade into the background with each day that passes, until it’s just a part of your distant past. You can beat this!