Depending on your situation, declaring bankruptcy may be the best solution when dealing with insurmountable debt. While you can expect consequences from filing, it certainly won’t impact you forever. There is life after bankruptcy, and when approached correctly, good credit can be reestablished. When you take the following steps, you may just be surprised how insignificant your filing becomes in comparison to the fresh start you’ve been given.  

What You Can Do to Rebuild Credit After Bankruptcy 

1. Avoid Future Debt Problems

Achieving a breakthrough in your finances starts with identifying how you got into debt and developing a plan to avoid the problem. Some people end up having financial troubles due to poor spending habits, while others encounter a job loss or medical emergency. Whatever your reason for incurring debt and filing for bankruptcy, establish a budget and start a savings account to help prevent future hardship.

2. Apply for New Lines of Credit 

Although taking on new debt may seem counterproductive, this is an effective method for rebuilding credit. The key is to apply for secured credit cards and to keep the balance at an amount that’s low enough for you to pay off each month. Over time, this will improve your score. 

3. Monitor Your Credit Report Closely 

Inaccuracies in reporting can significantly harm your credit. Check your credit report every three months and closely examine it for any discrepancies. If you find errors, report them right away so they can be removed.

Your efforts at achieving financial freedom shouldn’t end with a bankruptcy discharge. To ensure your debt history has as little influence over your future as possible, contact The Law Office of Christopher J. Swatosh in Ava, MO. For over 20 years, Attorney Swatosh has provided unparalleled guidance and representation throughout the filing process. He will ensure you file the correct chapter to meet your unique economic goals. Contact his office at (417) 683-2987, or visit him online to learn more.