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Rebuilding Your Credit After Bankruptcy? 5 Mistakes To Avoid

Marija Jovanovic



Bankruptcy can be a difficult experience, and it can leave a lasting mark on your credit report. While it’s possible to rebuild your credit after a bankruptcy, there are some common mistakes that people make—mistakes that can set you back years. In this article, we’ll explore the five biggest mistakes to avoid when you’re rebuilding your credit after filing for bankruptcy. From prioritizing debt repayment to avoiding predatory lenders and more, you’ll have the information you need to stay on track with your financial goals. Read on to learn more!

Bankruptcy and Your Credit Score

Bankruptcy is a serious financial event that can have a lasting impact on your credit score. If you’re considering bankruptcy, it’s important to understand how it will affect your credit and take steps to rebuild it afterwards.

There are two types of bankruptcies: Chapter 7 and Chapter 13. Chapter 7 bankruptcy wipes out most of your debts and allows you to start fresh. Chapter 13 bankruptcy allows you to keep some of your assets and repay your debts over time.

Either way, bankruptcy will stay on your credit report for up to 10 years and will make it difficult to get approved for new loans and lines of credit. However, it is possible to rebuild it after bankruptcy if you take the right steps. Bankruptcy credit repair involves making on-time payments, reducing your debt and using credit responsibly.

You can also speak to a counselor or a financial advisor to help you rebuild your score. They can provide advice on how to manage your money and create a budget that works for you. With their help, you can slowly rebuild your score over time and eventually get back in good standing with lenders.

Common Mistakes People Make After Bankruptcy


  1. Failing to get new credit: This can be a major setback because it means you won’t be able to rebuild your history and improve your credit score.
  2. Not using credit cards wisely: It’s important to use them responsibly and make on-time payments in order to improve your score.
  3. Applying for too much new credit: While it’s important to get new credit, you don’t want to apply for too many accounts at once as this can be a red flag to creditors and lower your score.
  4. Failing to monitor your report: You can request a free copy of your report from each of the three major bureaus once per year.
  5. Relying on someone else to help you rebuild: Finally, another mistake people make is relying on someone else, like a friend or family member, to help them rebuild their credit after bankruptcy. While they may mean well, this can actually backfire and hurt your chances of rebuilding it.

How to Improve Your Credit Score After Bankruptcy?

While it may take some time to rebuild your credit after bankruptcy, there are certain things you can do to help improve your score. Here are a few tips:

  1. Get a secured credit card: This is one that is backed by a deposit you make with the issuer. This deposit acts as collateral in case you default on your payments. Because of this security, secured cards are easier to get than unsecured cards. When used responsibly, they can help improve your score. Just make sure to make your payments on time and keep your balance low.
  2. Use a co-signer: If you can’t get a credit card on your own, you may be able to get one by finding someone to co-sign for you. This person will be responsible for making the payments if you don’t. Again, it’s important to make your payments on time and keep your balance low to avoid damaging your co-signer’s credit score as well as your own.
  3. Get a copy of your report: You’re entitled to one free copy of your report from each of the three major credit reporting agencies – Experian, Equifax, and TransUnion – every year at Reviewing your report regularly can help you catch any errors or mistakes that can be corrected to improve your score.
  4. Pay all of your bills on time: One of the best ways to start rebuilding it is to establish a good payment history. Make sure you pay all of your bills on time, including your rent, utilities, and any other debts you may have.
  5. Don’t open too many new accounts: Applying for too many new accounts in a short period of time can lower your score, as it could be seen as a sign that you’re desperate for credit or that you may not be able to handle the responsibility of managing multiple accounts.

By following these tips, you should be able to gradually improve your  score after bankruptcy and eventually get back on track financially.

How to Reestablish Credit After Bankruptcy?


  1. Establish a secure payment history. Start by getting a secured credit card and using it responsibly to rebuild your score. Make sure to make on-time payments and use less than 30% of the card’s limit.
  2. Get added as an authorized user on a family member’s credit account. This is an effective way to start rebuilding it if you don’t want to apply for a new credit card yourself. You will benefit from their positive payment history, and the creditor will report all activity on the account to the credit bureaus, helping you raise your score.
  3. Apply for a loan from a reputable lender or bank. Once you have established a good payment record with your secured card, you can apply for a loan from a bank or lender that specializes in helping people with low credit scores rebuild their financial standing. The interest rate may be higher than normal, but it will be worth it in the long run if you can responsibly manage your payments and pay off the loan over time.
  4. Monitor your progress regularly by reviewing your credit reports and scores at least once every few months to ensure that everything is accurate and up-to-date, and that you are making progress.


Rebuilding your credit after bankruptcy is possible, but it does take time and effort. Avoiding the mistakes we have outlined in this article will give you a much better chance at success and help make sure that your journey to financial freedom remains on track. With dedication, discipline, and some smart strategies, you can rebuild your score and get back on track with no further problems down the road. Good luck!

Hey! My name is Marija Jovanovic, and I work as a content editor and writer at When I'm not working, you'll catch me gaming, designing pictures or traveling. I've got a knack for programming and solving PC troubles, which fits perfectly with my gaming vibe. Off-duty, I mostly spend my time gaming, coding something cool, or traveling to exotic destinations!


Tax Filing Tips for Small Businesses: How to Make It Less Stressful

Marina Opacic



Tax Filing Tips for Small Businesses

Filing the tax forms at the right time is a headache for all businesses, big or small.

However, things get slightly more complicated for smaller companies because they do not have a full-fledged accountancy team that most big businesses can boast of.

So if you are the owner of a small business, then you can contact Bradford accountants to make your life easy.

So here are a few simple tips to reduce the stress associated with filing tax returns.

Ways In Which You Can Make Your Tax Filing Easy

1. Have A System Of Deducting Tax At The Source

Have A System Of Deducting Tax At The Source


If you are the owner of a small business, establish a system of deducting taxes at source. If you are hiring the services of a freelancer or paying some money as commission, then you must deduct tax at source.

If you do not deduct tax at source, that amount cannot be used for deductions at the end of the financial year.

2. Maintain A Clear Distinction Between Your Business Revenue And Your Personal Income

Many small businesses operate with few employees and limited resources, yet this does not mean that the owner’s personal account should not be kept separate from the account of the business.

Your balance sheets become complicated if you have too many entries in your account. So if you do not want to attract the attention of government agencies, it is better to separate your personal and corporate accounts at the very outset of your business.

3. Know The Basics Of Accountancy and Finance


If you own a small firm and you do not have the monetary resources to hire an accountant, you will have to do the paper related to taxes all by yourself. So it will be helpful if you know some basics of accountancy and finance.

So even before you venture into maintaining accounts, you should know the meaning of terms like revenue, cost of goods sold(COGS) etc.

If you want you can take a short accountancy course of three or four months. And these will ensure that you are not a novice when you begin handling your own balance sheets.

4. Maintain Proper Accounts And Keep A Tab On Reliefs That You Can Claim

As far as small businesses or startups are concerned, getting all the deductions possible will go a long way in ensuring that the final tax bill is as low as possible.

So here is a list of common deductible expenses that you should maintain accounts for:

• Deductions For Making Capital Expenditure

Capital expenditure means the money that is spent on buying assets that give long-term returns.

Capital expenditure results in a major outflow of money for all businesses.

So if you are the owner of a small business and if you have spent money on buying a new office or a new computer, you can claim a deduction for it in your corporation tax return.

• Relief Due To Money Spent On Research And Development Activities

Relief Due To Money Spent On Research And Development Activities


Most governments reward businesses that spend money on research-related activities. This is because research helps solve challenging problems for the human race. It leads to the economic development and social upliftment of the country.

So if you own a small business and your company has funded research work that is innovative, then you can claim as much as 20% of the money spent as tax credit while filing the tax return for your company.

• Tax Relief For Making Contributions To The Development Of Creative Industries

Relief is available if your company somehow contributes to the development of the creative industries.

However, this sort of relief is not available across jurisdictions. So depending on your home country, you have to know what kind of relief your company is eligible for.

So if you wish to claim deductions, maintain an account of all the expenditures incurred and know about the tax reliefs available in your country.

5. Feel Free To Use An Accounting Software

Accounting Software


Accounting software can automate a lot of functions. So you do not have to manually fill in all the entries. This saves a lot of time and reduces human errors.

However, there is software that is available in the market, so you must consult a knowledgeable person before buying a particular program.

6. Pay Taxes Quarterly Instead Of Annually

It is always better to pay taxes for shorter intervals of time as the number of entries into the balance sheet is less.

Less number of entries means a lesser chance of committing mistakes. Also, you do have to rush every to at the end of the financial year since a lot of work would have been done in the previous quarters.

7. Keep Track Of The Value Of Unsold Inventory


Small businesses have to keep a tab of their unsold inventory.

However, doing all the calculations all by yourself is quite a challenge. The problem becomes more acute if you own two or three stores. In that case, you should invest in an inventory management system which will reduce a lot of the trouble.

8. Hire An Accountancy Expert

Hiring an expert to file your taxes on your behalf is the best idea. Hiring an expert reduces most of your burden, and you can utilise your time better instead of worrying about taxes.

So once you have some money, do invest in hiring an accountancy expert.

An expert will not only do your balance sheets for you but also advise you on the ways in which you can manage your expenses better.

So hiring an expert will save you more money in the long term for your company.


Small businesses contribute a lot towards a country’s growth and development.

Most governments give a lot of deductions for small firms. But if you are to take advantage of those reliefs, then you have to first maintain your balance sheets accurately.

Tax filing and balance sheet maintenance is a daunting task for most small firms and taking help from experts, or software is of great help.

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9 Tips to Manage Small Business Finances.

Nebojsa Vujinovic



It is not easy to manage small business finances. Most small business owners report that managing steady and consistent cash flow is difficult.

These are nine ways to ensure your small business finances run smoothly and plan for the future.

1. Prioritize financial planning for businesses

A comprehensive plan for small business finances includes budgeting, accounting and tax planning.

To gain insight into the performance of your business, you must periodically review your financial statements and accounting reports.

Preparing ahead is the best way to avoid stress when it comes to tax. Organized records and good bookkeeping will help you avoid common mistakes when filing taxes. Learn how to reduce your tax burden as a small-business owner by understanding tax deductions.

2. Stick to your budget

A budget can make a huge difference in how your small business finances are managed and will help you reach revenue goals faster than you might expect. A budget will help you forecast your revenues and identify any unnecessary expenses.

You should create an operating budget that shows the expected revenues for the coming financial year. Although this is a summary of the main details, it provides all information about fixed costs, variable costs, and operating expenses.

An operating budget is a tool that will tell you if your expenses are in line with your plan. Next, create a cash flow budget that tracks money coming in and out. This will help you to understand your business’ liquidity position.

3. For your business, get a corporate card

Corporate credit cards aim to alleviate the problems associated with digital spending. These cards increase the company’s purchasing power and improve cash conversion cycles by providing short-term credit at zero interest (no cost)

Corporate credit cards offer a greater credit limit than personal cards. This allows you to pay all business expenses without worrying about personal liability.

4. Get a line credit

You can also use a line or small-term financing to manage your small business finances and grow your business.

A line of credit is a short-term financing option that can help your business’s short-term needs, such as inventory maintenance, salary payments, or new orders.

5. Optimize your payroll process

You must ensure steady cash flow, but you should also consider the best ways to streamline payroll processes.

It is easy to ensure that your employees receive their salaries directly by choosing the right payroll software.

Direct deposit allows you to better manage cash flow. It eliminates the possibility of employees depositing cheques at different times. This can disrupt cash flow and make it difficult for you to access funds in your account.

6. Do not be afraid to apply for loans

Many business owners worry they will fall into a debt trap if they borrow money. This is a false assumption.

Unexpected expenses can be addressed with business loans. It doesn’t matter how well you manage your small business finances. Market volatility and disruptions can make it extremely difficult for your company to raise working capital.

The best aspects of small business loans are the ease of eligibility and minimal documentation. This allows for a quick and easy application process.

Small business loans can be used without collateral and at attractive interest rates. The loan can be used for many purposes, including purchasing inventory, paying employees, and paying utility bills.

7. Separate your personal and business finances

Combining personal and business expenses is a great way to create disorganized records.

It can be challenging to keep track and monitor money spent and received. You may also pay personal funds on business expenses or vice versa.

8. Increase inventory analysis

Your company’s survival depends on your inventory management. Your entire supply chain will run smoothly if your inventory is well-organized. Organizing your list can cause problems like misshipments or be out of stock.

9. Choose a financial tool/service

You can use various financial services to better manage your small business’s cash flow and finances. These tools allow finance departments and business owners to automate repetitive, manual financial tasks and gain insight into money flow.

Last words

These are just a few simple ways to manage your small business finances and keep your business running smoothly.

As a small business owner, there is plenty to do. You can’t grow if you delay accessing funds or wait for approvals.

Razorpay Capital offers end-to-end solutions that can help small businesses finance and grow.

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Five Finance Skills Small Business Owners Should Hone In 2024,

Nebojsa Vujinovic



Managing a business today isn’t a cakewalk in today’s highly volatile world. Entrepreneurs and business managers must manage every business activity and stay abreast of changing business norms and trends. From supply chain management to marketing and IT, human resources, and finance, every business is a complex area that requires intense effort, time, energy, and investment. However, others keep entrepreneurs on their toes, financial tasks such as cash flow and outflow, financial decisions, and budgeting. In this regard, all business professionals need to improve their financial knowledge and abilities to improve their financial knowledge. This includes budgeting and forecasting, analysis of financial statements, bookkeeping, increasing the credit score of businesses, using technology, and so on.

Every small-scale business owner trying to oversee their business’s daily activities successfully should learn these abilities and improve their financial knowledge. Which ones are of the most significant importance? Let’s look at this further.

Analyzing financial statements

Every company uses financial statements to estimate how to manage and monitor costs, debt, profits, and revenue. Financial statements are crucial instruments that help assess the company’s performance and evaluate potential expansion opportunities. However, understanding financial statements is a technique learned by experience, and it’s not easy to master. Because of this, professional and small-scale business owners need to look into higher education options to improve their financial proficiency. Additionally, because of the flexibility offered by eLearning, professionals may consider taking on an advanced master’s degree or certificates in managing business activities. They could select CPA certifications, take advantage of online review classes, keep track of CPA scores and participate in online courses.

These certifications impart fundamental financial abilities, ultimately increasing the efficiency of your business’s financial operations.

As you’re probably well aware, there are numerous financial indicators to track in business. To avoid getting overwhelmed, focus on your cash flow, income, and balance sheet. We’ll go over the following:

Balance sheets

It’s a financial report that is organized and presents your equity, assets, and liabilities. This report is crucial to prove your financial strength to investors and lenders of your company.

Statement of income

The income statement often referred to as the profit and loss statement (P&L), will show the amount of money you earn, the place it’s spent, and the areas where you can cut the amount. It gives you an estimation of your business’s profit margins.

Cash flows

It offers a complete summary of all the outgoing and inbound money over a particular time that will help you improve your cash management.


The way you use your money and the amount you put on a specific expense or resource over a certain period affect your income, cash flow, and the longevity of your business. You need to be focused on budgeting and come up with suitable strategies.

Setting appropriate spending restrictions for your small-scale business will assist you in planning your business better today and in the future. Check out your spending patterns to determine if you have areas in which you can save money. This could mean canceling unneeded subscriptions, negotiating lower rates with vendors and suppliers or other vendors, etc.


In the business world, keeping track of your financial transactions is vital. Many business owners have distributors, customers, or vendors that need to be invoiced for a variety of services. This is why you’ll need an effective invoicing method to ensure that you pay promptly. Learn to minimize invoicing for bad debts and manage invoices to avoid tax and audits. To accomplish this, it’s best to utilize technologies, such as payment software.


According to the dictionary, bookkeeping is the continuous recording of your business’s daily transactions. It can be done manually using spreadsheets, with the help of a third-party tool for bookkeeping, or with the help of an accountant.

Bookkeeping provides you with an overview of the financial health of your business. It allows you to make plans and forecasts shortly, review spending and make budgets, enhance tax preparation and help you with the possibility of IRS audits. Although many bookkeeping programs are available nowadays, learning this ability is essential to overcome system loopholes.

Building a solid business credit

As your business grows and requires financing or investors, you’ll discover that you need an excellent credit score for your business.

Business credit measures your business’s ability to pay its debts that investors and lenders utilize to evaluate the risk. Let’s look at ways to improve this:

Separate your personal and professional financial accounts

Create a separate bank for the business account, and pay for all your expenses using your earnings or credit card. This will simplify tax filing since you don’t have to divide and separate personal and company expenses. Also, you’ll avoid making errors on tax returns and face more personal risk when you prepare them by hand.

Incorporate your business

Legally, you can form your business and segregate your assets from your commercial ones by creating a company such as a C-corp, S-corp, or LLC. Since many banks for business require a tax ID for businesses number, you’ll be able to make it simpler to open a company checking account.

Pay attention to your credit score.

The most effective way to build credit for your business is to apply for an enterprise credit line or credit card. Naturally, you must make sure that you can meet the repayment obligations. You’ll avoid compounding rates of interest as well as late fees and scratches on your credit report when you settle your debt promptly and in full each month.


Small-scale entrepreneurs, owners of small businesses, and business leaders need to improve their understanding of finance and expertise. To survive in today’s fiercely competitive market, they have to be able to ensure smooth operations in finance and greater profitability. It is essential to master specific skills like financial statement analysis, budgeting invoicing, bookkeeping, etc.

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