To make the most of your discharge and ensure sure life after bankruptcy goes smoothly, you’ll want to do a bit of planning.
Temporary Problems With Housing, Financing, and Banking
Some areas of your life will be more challenging to negotiate for a year or two after filing for bankruptcy, specifically, renting or leasing housing, financing a car, and establishing a bank account. So it’s essential to have these things in place before filing. And don’t plan on making changes soon.
Tip. If you’ll be letting go of a house and you're worried about moving your children's schools, rent something in the area, if possible—before filing, of course.
Rebuilding credit
You can start rebuilding credit soon after completing a bankruptcy. Most filers are surprised by how quickly they receive credit offers. But it makes sense. Creditors know you won’t be able to file again for quite a few years, so if you’re employed, you’ll be a reasonable credit risk. Take the opportunity to find out about credit-building strategies.
Buying a house
Many filers are relieved to learn that they don’t need to push aside a dream of buying a home. You could be eligible as soon as two to four years after your bankruptcy case. Find out more about post-bankruptcy homebuying requirements so you can plan accordingly.
Planning for the Future
After filing for bankruptcy, it’s common to want to secure your future. The first step is following a sound financial plan, of course. But you’ll also want to safeguard yourself against unexpected financial hardships. Putting money aside in a savings account is always a good idea. But you might want to contribute to a 401k plan or another ERISA-qualified retirement account. Not only would it be exempt if you needed to file for bankruptcy again (it happens), but you could draw on it in an emergency. Obtaining life insurance and making a will are other ways to provide for your family, too.