There are a lot of misconceptions about the bankruptcy process. Some people mistakenly think that they’ll be left with nothing once the process is completed, while others erroneously believe that they’ll never be able to rebuild their wealth or secure credit after filing for bankruptcy. None of that is true.
In fact, personal bankruptcy can give you a fresh financial start that puts you back on the path to stability and financial health. For example, although your credit score might take an immediate hit in the aftermath of filing for bankruptcy, you can diligently work to build your score up.
How to rebuild your credit score after filing for bankruptcy
Don’t be overly stressed about the impact that a bankruptcy will have on your credit score. While you’ll certainly need to be cognizant of the immediate ramifications of pursuing bankruptcy, you should know that there are steps that you can take to rebuild your credit score. These include:
- Checking your credit score to ensure that debts that were discharged in bankruptcy are removed.
- Making sure that you continue to make timely payments on debts that you retained post-bankruptcy.
- Obtaining a secured line of credit, such as a secured credit card, to demonstrate that you can practice responsible borrowing.
- Keeping balances on credit cards low.
- Building up savings so that you can pay off debt as it arises.
- Considering asking for a co-signer on needed loans.
There are other ways that you can work to build your credit score. Just make sure that you’re taking your time, being patient, and being careful in how much debt you take on.
Do you want to know more about the bankruptcy process?
There’s a lot that the bankruptcy process can do for you. If you want to learn more about what it entails, then you might want to reach out to a legal team that is well-versed in bankruptcy law.