After bankruptcy, the first thing to do is repair your credit. Without a proper credit record, you could be branded an untouchable by financial institutions and banks.
If and when you get any credit after the bankruptcy, you should be doubly careful that you do not default on any payments or else you will never come out from under the shadow of bad credit.
Keep records of your spending. The positive part of keeping accounts is that it is easy to use them to establish that things are moving on the right path.
A credit card or store card is the easiest way to improve your credit score. Keep a close track on the repayment schedule.
In case you need a loan, ensure that you do not repeat the mistakes you committed in the past that resulted in your bankruptcy.
If and when you get any sort of credit, ensure that you calculate very carefully how much the repayment installments are and how can you repay them. Any slight delay in payments could be taken very seriously by the lending companies.
Special classes are held by non-profit organisations and even debt management program providers. The programs are helpful when you have no money, a bankruptcy behind you, and you need to learn how to hold and manage extra cash. Money management is a useful skill, and not just in regard to money. It helps your self-discipline generally.
You will then find, when visiting your counsellor, that the love of easy money is the root cause of most of your problems.
What Do Bankrupt People Do When They Need A Loan?
When you file for bankruptcy and this motion is discharged, it means that the outstanding debts have been paid as per the bankruptcy rules. It will take two years for a person who was declared bankrupt to start with his normal life again.
It is possible to avail of a loan even before your lock-in period is over; however, it is quite hard to achieve this. One thing that could help you here is your post-bankruptcy credit report. If it is flawless, then you might have a chance to be considered for the loan. Besides, you would need to make a large deposit of 3-5% of the total loan amount.
The deposit can be met with a loan from friends and relatives; however, you would need to keep proof of every penny gathered, as the lender would need to see and accept the sources of your income. While it is acceptable to borrow for the deposit, the lender would not accept your application if your day-to-day income comes in this manner. You would need to have a job, which pays you sufficient to support yourself and repay the loan at the same time.
Another way to raise money for the deposit would be through online (and offline) grants. Run a search on the Internet and find out about this aspect. There are plenty of grants available on and off the Net, which could help you in this period of your life. The only thing is to get the right one.
The third pre-requisite that a lender would need is proof of your regular and sufficient income. Here, you will need to keep in mind that loans from relatives are not really an acceptable source of income.
If you manage to stay afloat for two years after the bankruptcy, then it will be easier for you to apply and get the loan you need. It remains for you to re-build your credit record and make the best of your future. It is also a good idea to save something out of your income every month so bankruptcy never happens to you again.