For people who file bankruptcy in Iowa, the future can be a bit scary. While there is some comfort in not having to face large amounts of debt, there are a lot of hurdles to cross. While it may seem overwhelming, it is possible to build back credit and prepare for a financially stable future, but it does take planning, strategy and discipline. 

According to Forbes, it is possible to recover quite quickly from bankruptcy and that the majority of people who file bankruptcy are able to build up a credit score of at least 640 within two years. One of the first things to do after filing is to analyze the reason for the bankruptcy. For some, unexpected medical bills or a job loss were the culprit. For others, poor spending habits may be the reason. If this is the case, it is imperative to make a budget and plan to stay within your means to avoid more financial trouble.

One way to build up credit is to use a credit card, but traditional card companies do not typically approve applications from those who were recently bankrupt. Fortunately, there are secured credit cards that require a deposit but count towards your credit score. The key is to use it semi-regularly, like once a month, and to not charge more than 20% of the spending limit. It is also imperative to pay off the amount in full every month.

It may seem obvious, but The Motley Fool discusses that borrowing money after a bankruptcy is not a wise thing to do. Not only would interest rates by very high, but it also begins a slippery slope to financial downfall. Along with only spending money they have, people who recently filed for bankruptcy should start focusing on saving money to prepare for unexpected bills and emergencies.