If you’ve been trying to claw your way out of debt for a long time, then bankruptcy might be your next logical step. After all, the process can help you shed crushing debt and secure a fresh financial start that gives you a new lease on life.
That might sound good, but if you’re like a lot of people then you’re worried about the long-term ramifications of bankruptcy. How hard will it be to get where you want post-bankruptcy? That depends on a lot of factors, including what you want out of the future, but there are steps you can take to put yourself on course to the future you envision for yourself. That might start with rebuilding your credit.
Tips for rebuilding your credit after bankruptcy
It’s true that a personal bankruptcy will stay on your credit report for several years. But this doesn’t mean that your finances will be doomed. In fact, here are some concrete steps you can take to slowly build up your credit:
- Make all payments on existing debt on time.
- Obtain a secured credit card to demonstrate that you can responsibly handle new debt.
- Stick with a job and a residence to show that you have stability.
- Ensure that debts that were discharged in your bankruptcy are removed from your credit report.
- Keep debt balances low.
- Build up savings so that you don’t have to turn to debt-based lending when an emergencies arises.
These are simple steps that can make a huge difference over time. So, develop a plan and stick with it post-bankruptcy so that you can build the future that you want for yourself.
Do you want to learn more about personal bankruptcy?
If so, then please continue to read our blog and our website. There’s a lot to take in, but don’t be overwhelmed by the process. There are advocates out there who can help answer your questions and guide you through what the process will look like in your unique set of circumstances.