The first thing to do after filing for bankruptcy is to fix your credit. If you don't have a good credit history, banks and financial institutions might not want to deal with you.
If and when you get credit again after filing for bankruptcy, you should be extra careful not to miss any payments. If you do, you will never be able to get out from under the shadow of bad credit.
Keep track of what you spend. The good thing about keeping records is that it's easy to see if things are going in the right direction.
The easiest way to raise your credit score is to get a credit card or store card. Keep a close eye on the plan for paying back the loan.
If you need a loan, make sure you don't make the same mistakes you did before that caused you to go bankrupt.
When you get any kind of loan, make sure you carefully figure out how much the payments will be and how you will pay them back. Companies that lend money could take even a small delay in payments very seriously.
Non-profits and companies that help people deal with their debts hold special classes. The programmes help if you don't have any money, have been bankrupt in the past, and need to learn how to hold and handle extra money. Money management is a skill that is useful in many ways, not just with money. In general, it helps you be more self-disciplined.
Then, when you see a counsellor, you'll find that your love of easy money is at the heart of most of your problems.
What do people who have been bankrupt do when they need a loan?
When you file for bankruptcy and this motion is discharged, it means that you have paid all of your debts according to the rules of bankruptcy. A person who has been declared bankrupt won't be able to start living normally again for two years.
You can get a loan even before your lock-in period is over, but it's not easy. Your credit report after bankruptcy could be helpful in this situation. If it is perfect, then you might have a chance of getting the loan. Also, you would have to pay a big down payment of 3–5% of the total loan amount.
You can get a loan from friends and family to pay for the deposit, but you'll need to keep track of every penny you get because the lender will want to see and approve your sources of income. Even though you can borrow for the down payment, the lender would not approve your application if this is how you make a living. You'd have to have a job that pays you enough to live on and pay back the loan at the same time.
Grants, both online and off, would be another way to get money for the deposit. Find out about this part by doing a search on the Internet. There are a lot of grants, both on and off the Internet, that could help you right now. All you have to do is find the right one.
The third thing a lender would need is proof that you have a steady and enough income. Here, you need to remember that loans from family are not really a good way to make money.
If you can stay financially stable for two years after filing for bankruptcy, it will be easier for you to get the loan you need. It's up to you to fix your credit and make the most of the rest of your life. It's also a good idea to save some of your money every month so you never have to declare bankruptcy again.
