"It's been 20 years since my bankruptcy and I still can't let go of the shame." A reader sent Steve that note, and it's why step one on today's list is to take a breath and let go of the shame. Filing isn't the end of the story. It's the day your comeback starts.
Steve, the original Get Out of Debt Guy, and Damon Day, the new Get Out of Debt Guy, walk through ten things to do after you file, in roughly the order you'll face them, plus one Bonus Tip they couldn't leave out.
The 10 steps:
1. Take a breath and let go of the shame.
2. Finish the second course, the debtor education class you take after filing.
3. Keep your discharge order and case papers forever.
4. Pull all three credit reports at AnnualCreditReport.com and fix the mistakes.
Bonus Tip: Feel like you should repay a discharged debt? Pay it forward to your own retirement instead.
5. Know what to do if a collector calls about a discharged debt.
6. Keep paying on what you kept, and know whether you signed a reaffirmation agreement.
7. Build a real budget and a cushion, even though budgets suck.
8. Step back into the credit game to rebuild your credit, slowly and on purpose.
9. Watch out for the post-bankruptcy predators.
10. Restart your retirement savings, because time is the thing that makes it grow.
Plus: a mortgage broker who shrugged at a bankruptcy a year later, a credit union trick for building credit with a small amount of cash, and why paying back creditors instead of saving for retirement can leave the burden on your kids later.
A note on the Bonus Tip: the law lets you repay a discharged debt voluntarily if you choose to (11 U.S.C. 524(f)), but the creditor can't pursue or collect it, and many won't accept the payment. When Steve tried, his creditors refused. You don't owe it, so put that money toward your own future first.
Steve is not an attorney. Ask your bankruptcy attorney about anything specific to your case.
Find more debt help and the free Ask Steve chat at GetOutOfDebt.org
Get Steve's free weekday email at YourMoneyActually.com
Talk with Damon Day about your situation at DamonDay.com
Watch the video version on YouTube: Get Out of Debt Guy, the Penny Stupid Project and Old Guy Insights.
