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What Needs to Happen Before I Get Credit After My Chapter 7 Bankruptcy?

The first thing that needs to happen is get your discharge. Keep a copy of your Discharge Order with your important papers – this is one of most important financial papers in your files.

What has been surprising to me is the number of clients that continue to treat their mail liked they did before they filed. It all ends up in a pile and the correspondence from the US Bankruptcy Court is treated like other junk mail. PLEASE treat every letter from the Bankruptcy Court with care. Open it and call your lawyer if you have any questions. Keep all of those letters in one place. And – for sure – keep your discharge and put it in a special place where you can find it.

Immediately after receiving your discharge, you will be deluged with credit card offers. Most – if not all – of these offers will be for expensive credit cards: High interest and annual fees. Your better credit deals may take some strategy – especially if you want a conventional mortgage.

Your local credit union is going to be your best resource for credit after your discharge. I have had clients get super deals from credit unions immediately after they receive their discharge. Others have had to struggle a little bit longer. Regardless, if you have income (from any source) you will get credit.

The most important happenings after you file is to let some time pass and make sure that during this time you pay all of your bills on time. Paying your other normal and necessary bills on time is really important. The last thing you want is for a cable or cell bill or a new medical bill to go to collection.

During this time, you also want to try to save as much money as you can. Not only do you need emergency funds, but you also need money for a down payment on your new car of new house. I tell my clients that saving money is just like any other habit. I also encourage maxing out your contribution to your employers matching retirement plan. Unlike your special down payment savings, your retirement funds are off limits and cannot be touched for anything until you actually retire.

Don’t suffer in silence, if you need help or have a question, call me anytime at (989) 233-9389. Let us help

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