Bankruptcy offers debt relief for Michigan residents struggling with an overwhelming financial burden. The idea of filing Chapter 7 may be frightening at first, it won’t last forever. Instead, it may help you move past the debt and get on with the rest of your life faster than with other options.
According to the United States Courts, Chapter 7 bankruptcy may offer a fresh start to individuals experiencing financial hardship. Here are some tips for moving forward once you complete bankruptcy.
Get a secured credit card
Moving forward typically includes improving your credit score, and getting a low-limit, secured card is often the fastest way to do this. Credit card companies understand this too, and many offer special options for people coming out of bankruptcy. Secured credit cards rebuild credit as quickly as unsecured cards, and you may qualify the day you receive the discharge. In addition, using credit for routine expenses and paying the balance each month builds your history and keeps your utilization ratio at zero. These are two main factors in your credit score.
Learn about finances
Attending classes that help you budget effectively and use credit wisely is one of the requirements of Chapter 7. There are also many different tools available that can help you track your finances, from smartphone apps to software and accounting techniques. They can help you understand your financial health and potentially avoid falling into the debt trap again.
Changing your spending habits may be challenging, but it’s generally less stressful than dodging creditor calls. Bankruptcy is the transition between your current finances and the way they can be. If you qualify for Chapter 7, you can complete it in about six months.