Tips for Recovering from a Chapter 7 Bankruptcy

The decision to declare bankruptcy is a tough one, and one usually born of sleepless nights and anguished worries of what's to come. It's only natural to feel that way, since most people are extremely reluctant to admit that their financial situation has gotten so out of control that they have no alternative but bankruptcy. You should know, however, that your financial situation will begin improve the moment you file, and will only get better from there on. Read on for some tips on handling life after a bankruptcy filing.

1. Examine the road to bankruptcy. You cannot begin on the road to making better decisions until you understand where things went wrong in the first place. You can learn to use credit more wisely, to make and use a budget and to put aside some emergency funds, but only if you make it a point to do so.

2. Check your credit report regularly. While the black mark of bankruptcy can be upsetting to view, you should know that a federal bankruptcy filing is not enough to prevent you from getting any credit at all. Make sure that the debts you listed on your bankruptcy petition are not showing as current or past due debts; they should only be showing up as closed accounts. Take care to report any mistakes or issues as soon as possible to all three credit bureaus.

3. Beware of bad credit offers. As mentioned above, you will be offered opportunities to get credit, and often you will find offers in your mailbox right after your bankruptcy is final. In fact, the record of your federal filing is what prompted those offers. Regard these offers with skepticism, and read the fine print carefully. Often, these creditors prey on bankruptcy filers and their desperation with cards that come with high interest rates and punitive fees.

4. Keep a watch on your credit score. You can only go up, so use one of the free sites like or to check your score and your report every month.

5. Seek support. You are far from alone on your journey back to fiscal health, though it may feel that way at times. Sites like offers a forum full of success stories and helpful advice about rebuilding credit, getting auto loans and even mortgages in the years after a bankruptcy filing.

You cannot begin on the journey toward a better financial future until you get started on it by declaring bankruptcy. Discuss your financial situation with firms like The Law Office of Israel S Hernandez, PLLC.