For those who have accumulated more debt than they can ever pay off, filing bankruptcy may be the answer. Discharging applicable debts after liquidating assets or completing a payment plan can help you regain your financial footing. There is one major disadvantage of declaring bankruptcy, though — the impact it has on your credit. Fortunately, you can start improving your score right after filing by following a few simple tips.

How to Rebuild Credit After Filing Bankruptcy

1. Obtain a Secured Credit Card

Unlike traditional credit cards, secured cards require an initial cash deposit. This protects lenders in the event of nonpayment, thereby allowing them to extend these cards to those with less-than-perfect credit. Opening a secured account as soon as you can after filing bankruptcy will help start rebuilding your credit—as long as you only use it for small purchases and pay off the balance in full every month.

2. Keep Making Regular Payments

Every on-time payment will improve your score just a little more, helping to cancel out all the negative marks over time. Continue making on-time payments for all the accounts that were not discharged during the proceedings. This might include student loans, child support obligations, alimony, and IRS payment plans.

3. Limit New Accounts

As your score increases, you may want to start opening new accounts. Every application will result in a hard inquiry, though, which impacts your credit score negatively. Although this impact is relatively small, multiple hard inquiries within a relatively short period will add up. It will also show future lenders that you are desperate for credit, and they may be less inclined to approve your application as a result.

If you’re thinking about filing bankruptcy, turn to Brian Kawamoto Attorney in Aiea  HI. For over 25 years, this firm has been helping consumers discharge applicable debts and get back on their feet. To request a case review with a seasoned bankruptcy lawyer on their team, fill out the form on their website or call (808) 486-6107.