Bankruptcy can be a strategic financial move for those facing an overwhelming amount of debt, but it’s not without disadvantages. While bankruptcy can help you manage your debt, it does affect your credit score. Fortunately, this impact is temporary, and there are steps you can take to rebuild your credit relatively quickly in the wake of filing. Here are a few ways bankruptcy attorneys encourage their clients to start rebuilding their credit as soon as their petition is approved. 

3 Tips for Rebuilding Credit After Bankruptcy

1. Obtain a Secured Credit Card

Bankruptcy attorneys suggest that the first step to reclaiming your credit after filing for bankruptcy is to apply for a secured credit card. Since it requires a cash deposit, even applicants with bad or no credit can usually qualify for one. Obtaining a secured card and using it responsibly will improve your credit in small, but noticeable increments every month. 

2. Sign on as an Authorized User

Loved ones may not want to cosign a loan for you while you’re in a vulnerable financial state, but they can consider making you an authorized user on one of their accounts. This will boost your credit score while bolstering an otherwise limited credit history. Adding someone as an authorized user is less risky than cosigning a loan for them, especially if the account holder doesn’t actually give them a physical card to make purchases. 

3. Devise a Budget

Bankruptcy attorneys advise clients to devise a reasonable budget as soon as they decide to file so they can avoid accumulating new debt after discharging the old debt. Depending on the type of bankruptcy you file and whether everything can be discharged, you may still have to make regular payments following the proceedings. Missing these payments will hurt your credit, but making payments on time will improve it over time.

If you’re struggling to make payments on your debts, turn to a bankruptcy attorney at Zebley, Mehalov & White, P.C., to explore your options. Based in Uniontown and Brownsville, PA, this full-service firm represents clients throughout Fayette, Greene, Washington, and Westmoreland counties. They are a general practice firm, which means you can rely on them whether you need a personal injury lawyer or a divorce attorney. To read a list of their practice areas, visit their website or call (724) 439-9200.