While it is a last resort, many individuals decide that filing for bankruptcy is their only option.  Once you’ve filed for bankruptcy, it’s important to reestablish credit and learn from prior financial mistakes.  Here are some tips to help you, a friend or maybe a family member recover from bankruptcy.

Reestablish Credit
There are credit cards that are called Secured Credit Cards because they are based on money you have on deposit with them.  This will help you build credit because they report to the major credit bureaus because you also make regular monthly payments.

Reaffirm Car Debt
If you are still making payments on your car, you’ll want to sign a reaffirmation agreement with your car lender.   This means you intend to keep the car and continue to make payments.  If you do not intend to make payments, do not sign the agreement or you will be liable for the debt.

Check Your Credit Report
Make sure that after your bankruptcy has gone through that your credit report reflects it.  You don’t want to still see thousands of dollars worth of debt if you are no longer liable.  If it continues to show up, make sure to contact the 3 major credit bureaus.

Don’t Make the Same Mistakes
Bankruptcy should be like a fresh start.  Don’t go back to old habits of overspending and taking on new debt.  Have a support group or someone that can help you manage your money and hold you accountable.

And finally… Take the SaveItUp Challenge!!
This will allow you to establish a Financial Accountability Partner, set savings goals, and learn good financial habits.