by Annie Biller

Created on: December 12, 2008   Last Updated: February 22, 2012

As a life changing event, bankruptcy ranks right up there with divorce, having a baby, getting married, or dealing with the death of someone you are close to. While it does not carry quite the same stigma it used to, it is still something you will be dealing with over at least the next ten years, and in some aspects, possibly even longer than that.

 Most worry about the damage a bankruptcy will do to their credit rating. Realistically, if you filed bankruptcy your credit rating was not all that great to start with, or it was on a definite downhill trend.

 Be prepared for a deluge of offers for credit. Bankruptcy seems to bring out the sharks. Offers for new car loans through car dealerships or loan agencies will be plentiful. Their offers to help you rebuild your credit may be very tempting. Ignore the hype. Read the fine print. Make sure you understand the terms. Expect to see high interest rates.

 Credit card offers will fill your mailbox. These will also offer to help rebuild your credit. Interest rates on most will be high. Expect credit lines to be low. Fees such as annual fees, set-up fees, service fees, and more may eat up most of the available credit on a card before it ever reaches you. You are in debt before you use the credit card. Terms may be stiff. Read and understand them before you commit.

 Inevitably at some point we will find ourselves needing credit of some type. Don’t be surprised if you are asked to have someone co-sign on loans for you. Loan companies and banks do extend credit at high interest rates because they are aware that bankruptcy can only be filed every seven years. If you choose to acquire credit cards, use them wisely and pay on time, all the time.

 Finances are not the only area affected by bankruptcy. Those seeking employment may find it more difficult to obtain a job. It has become almost the norm for employers to check your credit record to help determine how well you can be trusted and relied on to do your job. A bankruptcy can certainly seriously impede your chances of finding employment in any position that involves finances.

 The stress of dealing with bankruptcy can cause serious problems within relationships. It can cause you to feel embarrassment or shame. It can leave you feeling like a failure. Depression is not unusual. Dealing with these problems may be difficult.

 Another of the hardest parts of dealing with the repercussions of bankruptcy is learning to live on a budget and monitor your spending. Living within your means can be difficult. Heed advice like ‘don’t spend what you can’t afford’. Pay bills on time. Try to save, even if it is just a few dollars a week.

 A positive attitude will go a long way toward making the process of rebuilding your credit easier to deal with.

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