Filing bankruptcy can be one of the difficult but most refreshing things that you endure in your life, especially when your business is on the line. Luckily, for many people, they can think of bankruptcy as one of the freshest starts they can have, helping them create better financial habits. For you, it might mean a fresh start to your business that you never expected. However, one of the biggest downsides to filing for bankruptcy for your business is the fact that it can have a huge negative impact on your credit score, which can put you in a difficult spot if you plan to take out loans in the future or make big purchases when it comes to the future of your business or your family.
How do you move forward when you fear that your credit will only worsen from bankruptcy filings? There are many ways that you can work toward rebuilding credit, which is just one more step toward normalcy when it comes to your life after bankruptcy.
Ways to Rebuild Your Credit
Budgeting: If you want to stay on top of the finances that you are spending every month on a variety of aspects, you want to learn how to properly budget. If you go through credit counseling while in the process of business bankruptcy, you will talk to somebody who is extremely knowledgeable in budgeting and can help you come up with a new plan to stay on track.
Emergency Funding: Expenses pop up all the time with businesses, and even the smallest ones can add up and put you back in debt, which you want to avoid at all costs. This is why it is imperative to have savings for unexpected expenses so that you don’t find yourself in an uncomfortable and impossible position in the future.
Management Plan: Create a long-term management plan that can help you avoid debt from many angles. By sticking to your plan and avoiding the same mistakes you might have many financially with your business in the past, you are working toward a better future.
Secured Credit Card: You might find that, ever since you filed for bankruptcy, it is not always so easy to apply to a credit card to rebuild your credit. However, over time, you might find yourself in a position where you can open a new credit card account that you can manage with new techniques and skills that you have learned.
Monitor Credit: After bankruptcy and utilizing a new credit card, you want to keep an eye on your credit at all times. If you’re not keeping a close eye on your credit score, you’ll never know if you’re making progress following your bankruptcy. There are many credit monitoring services that will not affect your score.
Turn to a Bankruptcy Attorney
Because we understand how important moving forward can be after you have had to put yourself and your business through bankruptcy, our attorneys can walk you through the process of rebuilding from the ground up once more. At M.J. Watson & Associates, our bankruptcy attorneys are here to help you through Chapter 7 and Chapter 11 bankruptcy and the difficult aspects that might follow. You never stand alone during this difficult time. Contact us and put your trust in our hands as you file for bankruptcy for your business for the first time. We are waiting to hear from you at 817-877-2861.