In a previous article, we talked about things that you should do after bankruptcy, but there are also plenty of don’ts.

Here are just a few to help you bounce back from bankruptcy.

1. DON’T Fall into Old Patterns

One of the most important things to remember about bankruptcy is that it is a life-changing event. It requires you to re-evaluate past practices and old habits when it comes to managing your finances. The last thing you want to do is start falling into the old habits that may have contributed to your bankruptcy.

2. DON’T Avoid New Credit

Many people who choose bankruptcy to help get them trouble emerge with a fear of credit. They’re afraid of past mistakes, or that history will repeat itself. While it is important to learn better spending habits, avoiding all credit will only weaken your credit score. This can adversely affect your car insurance, utilities, and other credit-dependent aspects of your life. Instead, try to rebuild your credit wisely, use your lines of credit sparingly, and take a slow and steady approach. This will allow you to build your credit safely and responsibly.

3. DON’T Ignore Credit Report Problems

While obsessing over your credit report every day can be counter-productive, remembering to check every 3-6 months can help you to avoid further issues. When an issue arises on your credit report, it can be tempting to ignore it and hope it goes away. Instead, make sure that you investigate each issue thoroughly. Don’t be afraid to call the creditor and ask for an explanation, part of the reason for bankruptcy is that it provides you with this kind of protection from creditors. It’s your credit report, and you have the right to know what may be affecting it.

4. DON’T Forget that There’s More Work to Do

One of the key things to remember about bankruptcy is that while it provides a fresh start, it doesn’t change what has happened in the past. It’s important to take the lessons learned from your bankruptcy and apply them to every day of your life moving forward. That doesn’t mean you can’t make use of credit or make purchases to improve your life and the life of your family. It does mean that you need to remember what caused your bankruptcy in the first place and take steps to avoid making the same mistakes.

5. DON’T Be Afraid to Ask for Help

After bankruptcy, you shouldn’t feel like you are alone. Look for support groups or a financial therapist to help you to deal with your new life. Another option is to work with a budget and credit counselor to help you set realistic goals, and create a plan to attain them.

Looking for more ways to improve your credit after bankruptcy? We invite you to take advantage of our credit analysis service. We can provide you with a detailed review of your credit report, a budget review, and a plan of action to improve your credit in a way that is effective and responsible.