People in Virginia who find themselves facing severe financial challenges may end up deciding that filing for bankruptcy is the best way to get out from under their mound of debt. Once this decision has been made, there will be steps to complete the Chapter 7 process but it is also important to focus on how to move forward after the bankruptcy is complete since a better future is ultimately what a bankruptcy can provide for people.
As explained by Bankrate, a consumer will want to focus on re-establishing good credit. Once a Chapter 7 discharge has been received, a person's debt to income ratio will be instantly better than it was prior to the bankruptcy so this will actually help when applying for new credit.
According to NerdWallet, a good first step back into credit may well be a secured credit card. This is a credit card that requires the consumer to essentially front the money for the credit limit. A person should use the card a little bit each month, keeping the overall balance well below 10 percent of the total limit, and then pay it off in full each month. This approach will tell lenders that the consumer has learned how to be responsible with credit. Over time, a person should then be able to qualify for an unsecured card.
People fresh out of bankruptcy should also regularly monitor their credit scores. A full credit report review is also important so that any errors on the report can be found and disputed.