The effect of a Utah bankruptcy on your credit and credit score is a that I am asked almost daily. Your future credit is going to be based on the good things you do after you file for bankruptcy. Creditors look to see what steps you are taking to be financially responsible.
I suggest that you take these steps as soon as possible after you file:
• Start to build your credit score by getting a low limit credit card, a secured credit card or personal loan. Don’t exceed 30% of your available credit each month and pay your balance off in full each month.
• Six months after you bankruptcy is closed order your credit report from the three credit bureaus. Verify that the reports say your debts have been “discharged in bankruptcy.”
• If you have student loans, try to pay more than the minimum required each month.
• Do not co-sign for a loan. Ever.
• If you intend to keep your car, sign a reaffirmation agreement with your lender.
You need to step up and manage your finances wisely after a bankruptcy. I suggest you really look at a bankruptcy as a fresh start and do the things now with your finances that you wish you would have done years ago. All of us can learn from our past but learning the mistake is useless unless we act on what we have learned. Click HERE to find information on financial challenges of the rich and famous and see what they did to overcome their financial challenges.