So you filed bankruptcy. Congratulations on taking steps necessary to deal with your old debt and get the legal protection and fresh start you are entitled to under the law.
Your journey isn’t over though. The best days are now ahead of you but you will need to take action to rebuild a better financial future.
Below you will find a combination of the biggest mistakes people make after bankruptcy and what you need to do to launch your new and better financial life.
if you can responsibly own sharp knives in the kitchen and not kill someone, you can avoid debt even if you have a credit card. It’s just about conscious personal responsibility.
If you shun credit and unsecured credit after bankruptcy it will only slow the rebuilding of your credit score. And a better credit score leads to lower cost loans, insurance, and other things. There is relatively no downside to having a good credit score or at least I sure can’t think of one.
If you don’t want to take the easier and better way, you can get individual free copies of your credit reports from annualcreditreport.com and then fumble through trying to match things up.
Once you get all three credit reports, or your consolidated credit report in front of you, you want to make sure every single account that was included in your bankruptcy is listed as included in your bankruptcy. You will want to look at the public records section of the report and make sure it lists the bankruptcy as well.
Also look for any other accounts you don’t recognize or are not yours and dispute those with the credit bureaus that list them.
This credit report exercise is important to make sure the door is closed and clock stopped on the old debts that were discharged in your bankruptcy.
Not only will you have joined me in that bankruptcy club but also some others you might recognize like Larry King, Mike Tyson, MC Hammer, Willie Nelson, Walt Disney, Jerry Lee Lewis, Dave Ramsey, Thomas Jefferson, Abraham Lincoln (essentially), Henry Ford, President William McKinley, Milton Hershey, Rush Limbaugh, Burt Reynolds, H.J. Heinz, P.T. Barnum, Charles Goodyear, and on and on and on.
I seriously doubt you filed bankruptcy on a whim or didn’t have a darn good reason for filing. Sometimes things just don’t workout as planned. And for whatever reason you found yourself in a bad situation with few good options. And let’s not forget, bankruptcy is your legal right.
The more you try to hide your bankruptcy, the more it will eat at you. You filed, so what, own it. Live with it. You did what you did because you had few if any other good options. Your life has not ended, you are not on fire, and nobody poked you in the eye with a sharp stick.
Life could be worse but you know what, it’s not right now. “Turn that frown the other way around” (watch video below) and let’s start being grateful for the life around you. It’s time to live for tomorrow, not yesterday.
And if you are still feeling blue about this, read Is Bankruptcy Sinful and Bad or Right and Moral? An Examination.