Despite the sinking feeling that your life is totally ruined by declaring bankruptcy, there is opportunity after a bankruptcy.
You have to expect certain consequences when you declare bankruptcy, and one of them is a less than stellar credit rating. But, this is no longer the kiss of death that it once was. Nowadays, it is what it is and it happens to everyone, including stars, politicians and even tycoons.
While most of us are not tycoons, we can indeed come back from the crash and burn feeling caused by bankruptcy. It just takes time, perseverance and a plan that you stick to; a plan your Iowa bankruptcy lawyer can help you draft. It is very common for debtors to wonder if they will ever get out of the black hole of debt. Yes, you can and with good planning you can re-establish your credit once again. Bankruptcy is really no longer a death sentence.
Be aware that there are federal laws in place that dictate how long your bankruptcy stays on your credit file, and that it is the same for all states. In other words, your credit report will show a bankruptcy on your record for 10 years. That may sound like a dismal scenario, but consider this – if you buckle down and deliberately make a plan with the help of your Iowa bankruptcy lawyer and pay your bills on time for at least 18 months, you can rebuild your credit rating once again. It takes hard work, but the end results are renewed credit.
Getting even a part-time job will also help your credit score. The goal is to get steady work as soon as you can after declaring bankruptcy and start rebuilding your credit history. You will need to ask for your free credit report from the three main credit bureaus in the U.S. and check to ensure it is accurate. If not, get the mistakes corrected.
Another step to take is to ditch any extra credit cards you may have and just keep one or two. This sends the clear signal that you are going to be more cautious in your spending habits. If you cannot get a regular credit card, then apply for a secure credit card. All these things will help to rebuild your credit rating.
There are a number of other things you can do, and they include getting secured loans, making regular deposits to a savings account, and establishing a rainy day fund. It is hard work, but you did not go bankrupt overnight, so it will take some time to build up your credit rating once again.