Many people fear filing for bankruptcy, worried that their financial futures will be ruined. This is simply not true. In fact, bankruptcy is a great tool that can provide you with the opportunity to get a clean start. How so? By resolving your debts you will be free to begin fresh, with a change to get on track to a financially sound future. There are a few simple ways to maximize your future success after bankruptcy.
Honesty Is Key
When filing for bankruptcy you will be required to list all of your debts and assets in the petition. During this time it is crucial that you are 100% open and honest about your financial situation. Attempting to conceal or hide any debts or assets could prevent you from having your debts successfully discharged. Further, if the court feels you were not honest about your situation your actions may be considered fraudulent, preventing you from filing again in the future.
Accuracy Is Important
After your debts are discharged your accounts are no longer considered delinquent. Not only should your creditor or lender reflect these changes in your personal account, but your credit report should be updated as well. Check your credit report to ensure that your information is accurate and up to date. If there are any inaccuracies, dispute them right away and have the issues resolved. Once your credit report is accurate and current you can begin pursuing the path to rebuild your credit.
Responsibility Is Essential
After bankruptcy you are afforded the opportunity to write a new credit history. Your negative and delinquent account statuses will be erased and you will be free to show creditors you are not a borrowing risk. the best way to clean up your credit is to obtain a single, small limit line of credit and make timely payments. Be a responsible borrower for 6 months to a year and slowly increase the amount you are borrowing or the number of credit lines that are active. Always remember not to over-extended yourself in debts and make sure you never miss another payment.