Tips to Recover From Bankruptcy During Covid

Covid has really changed the way that we look at the world. Many people are struggling to make ends meet. They have lost their jobs and have no idea what to do about that. The rising cost of everything isn't helping matters. For many, they look at bankruptcy as their only option. That being said, it can be hard to recover from that option.

Here are some tips to help you start your life over after bankruptcy.

Keep all of your paperwork. Though you may want to forget about your bankruptcy, the truth is that you need to keep all of your paperwork. You may need some of this information when you go to get another house, or take out a loan.

Start saving. You are going to want to do better this time around, so it is important to start by saving money. You might find it easiest to have money taken directly out of your paycheck and put into a savings account. You may also want to set up a recurring transfer into a savings account. Otherwise, try to put money aside as often as you can.

Then, pay all of your bills on time. As you work hard to reestablish yourself, you are going to want to pay all of your bills on time. You are going to want to keep up with your rent or mortgage and utilities. If you have any remaining debt, work diligently to pay it off as quickly as possible. This will help to improve your credit score, as well as get you started on a better financial path.

Open a secured credit card. If are unable to get a credit card or a loan, you may need to start with a secured credit card. This is linked to your bank account, so you won’t have to worry about missing payments, which could hurt your credit score. When you get this, you should use it regularly. Buy something every month with it, and then pay it off at the end of the month. After a few months, you may be eligible for a traditional credit card.

Think about your future. When you are struggling to get your life back on track, you may want to think about your future. Have an emergency fund, so you don’t have to reach for the credit cards when something comes up. Use this wisely, and keep saving.

Then, think long term. Do you want to own a home again? Go back to school? When you are tempted to start spending again, you may want to think about these long-term goals. Continue saving for the future and find ways to do better.

It is important to keep all of your paperwork as you go through bankruptcy. You may need these in the future, as you start to rebuild your life. While doing so, you should start off by saving money. You need to do better this time around, so saving needs to be your top priority, just like paying all of your bills on time.

You may also need to look at a secured credit card if you are unable to get a regular one. This will help you work on your credit. You want to do better this time, so you don’t end back up in bankruptcy again. You also need to think about your future. Have an emergency fund, so you don’t have to reach for your credit cards when something happens. You also should start saving for your future, whether you want to own your own home or go back to school.

Previously published on Medium and/or Newsbreak.