5 Ways to Move On After Filing For Bankruptcy

5 Ways to Move On After Filing For Bankruptcy

One thing that often holds people back from the debt relief they desperately need is the fear of the stigma associated with filing for bankruptcy. The truth is there isn’t much to fear about bankruptcy, and it can be a good way for getting back on your financial feet. There is light at the end of the tunnel! You can have a fresh start without hurting your credit rating in the long term. Here are 5 key things you need to know about filing for bankruptcy:

1. Take a breath after filing for bankruptcy

It has been a stressful road, now is the time to relax. You will need to get a financial plan in place. The first place to start is with your credit report.

2. Check your credit report

It is important to make sure your information is up to date and accurate. Not all lenders will send the latest information to the credit bureaus immediately after your debt discharge, so be sure to contact any that have not yet updated your information and request they do so quickly.

3. Implement a financial plan

Your financial fresh start should begin with establishing a budget. Use the tools learned in your credit counseling course to outline your expenses in relation to your income. Set up categories for miscellaneous spending like entertainment and restaurants. Track your spending and start a habit of staying within your budget.

4. Be patient

By now you are probably excited to see your credit improving from your debt discharge. Remember that credit recover takes time and effort, so be patient and stay diligent about maintaining low balances on your credit accounts and making consistent payments.

5. Explore alternative options

Filing for a personal bankruptcy may not be the best option for you. If you owe less than $250,000, other than the mortgage and charges against the principal residence, there exists an affordable monthly payment plan, which is completely interest free. The consumer proposal immediately stops all collection proceedings and legal action by your creditors, including lawsuits, asset repossession and wage garnishment. This will improve your household budget. To find out about the consumer proposal, please click here.

If you’re looking for a credit counsellor in Toronto, get a free assessment with us today by visiting us in person, emailing us, or call us at 416-900-2324.