Regardless of the economic climate, many people have found themselves in situations where declaring bankruptcy was the only way out. It has happened to the rich and famous, and those not so well known.
Naturally, the question that always comes up when one has to go through such a procedure is – am I going to be able to recover from this?
The answer from our resident Minnesota bankruptcy lawyer firm Bolinske Law is a resounding yes. However, there are certain ways that a person needs to go about it.
Recovering Damaged Credit
And understandably the first area they want to know about is their credit. Once again, the answer to that is yes, if you do it right. In fact, rather than wallow in pity what one needs to do is go to work as soon as possible re-establishing their credit.
And how do you do that?
Well, for one, make sure to always maintain a bank account, both checking and savings. This lets prospective creditors know that you are showing some semblance of proper money handling.
And while getting a major credit card may at first be next to impossible, there are other options. You can in most cases quite easily get a store credit card and sometimes a gas one too.
What you want to do and really must do is make purchases with them often, but…make sure you are paying them off right away and on time. However, only do so if you are absolutely certain you can indeed pay them off, otherwise you will find yourself in an even deeper hole.
Pay Your Bills On Time
And while we’re on the subject of paying off credit cards on time, that also goes for everything else. Have a rent payment? How about electric, gas, water or phone bill? Pay them on time, not one moment late.
After about a year or so this will go a long way in helping re-establish your credit worthiness. Do not think for one minute that potential lenders don’t notice these things, they do.
Leverage A Co-Signer
This last one is sometimes a pretty touchy subject. That is getting someone you know, like a relative or friend in good standing credit wise to co-sign on a loan for you.
This is one area where the consequences of not paying up can have a devastating effect. Many a family relationship or friendship has hit the skids – often permanently – because of the beneficiary of the co-signing not carrying their end of things.
So yes, establishing credit after bankruptcy is indeed possible.
If you want to get more information on bankruptcy and bankruptcy law, visit http://www.bolinskelaw.com to learn more.