When you can’t keep up with your debts, filing for bankruptcy can be a necessary step towards regaining financial security. However, some people shy away from this option because they worry about how it will impact their credit. While filing does appear on your financial history for seven to 10 years, it is possible to regain good credit after bankruptcy. Here are a few steps to help you through the recovery process. 

How to Regain Credit Post-Bankruptcy

1. Determine a Budget

Future lenders will want to see that you’ve learned from your experience with bankruptcy and can stay on top of your finances. Create a budget that includes all of your bills and expenses, making sure to pay them on time; late payments will hurt your rating.

2. Check Your Credit Score Regularly

If you want to improve your credit after bankruptcy, you should find out what you’re current credit score is. Additionally, choose one assessment barometer and check it every month. You may be surprised by your progress; after you ditch the burden of unpaid debt, many people end up with a higher credit score than they had before bankruptcy.

3. Start Saving

Incorporate a savings fund into your budget. Even $25 a month can add up to a useful sum; you’ll be able to cover a new phone or car battery if needed. And if you have a medical emergency, you’ll be less likely to need a loan. 

4. Get a Secured Credit Card

A secured credit card requires you to put down a deposit in the amount of the line of credit. Get one and use it regularly. Always keep up with your minimum monthly payments to rebuild your credit score. 

5. Consider a Secured Loan

A secured loan requires you to borrow against money you’ve already deposited and also prevents access to those funds until the loan is paid. You can also establish a loan against an upfront cash payment. Either way, a report of your payment history is sent to credit bureaus, boosting your score.

The first step toward a secure financial future is filing bankruptcy the right way. The attorneys at Mark Briden Law in Shasta County, CA, will help you determine whether Chapter 7 or Chapter 13 is right for you, and then file the relevant paperwork to get you on the road to financial stability. In addition to helping you file, they can offer you tips on improving your credit after bankruptcy. They have payment plans available for clients who are eligible. For a free consultation over the phone or in-person, fill out this online form or call (530) 222-1664.