If you’re thinking about declaring bankruptcy, it’s natural to be concerned about the aftermath. Although filing will provide a fresh financial start, your credit score will take a major hit in the process. Fortunately, repairing credit in the wake of the proceedings is actually fairly straightforward. A bankruptcy law attorney can evaluate your situation to discuss specific strategies that will help. Here, you will find some more general tips for getting back on track after discharging debt. 

Devise a Budget

Making on-time payments for every account that remains after the bankruptcy will help improve your score gradually. In fact, you may even notice it increase by a few points every month. It’s essential to devise a reasonable budget for after filing. If possible, set up automatic payments, as well, to ensure you never miss a payment inadvertently. If you plan on filing chapter 13 bankruptcy, make sure to account for the monthly payments in the budget, too. 

Open New Accounts

Discharging debt affects your credit score, which can make it challenging to secure financing. Since one of the best ways to show lenders your creditworthiness is by making regular payments, opening new accounts is essential for repairing your credit. For this reason, your bankruptcy law attorney will likely recommend applying for a secured credit card. Since these cards require a cash deposit, lenders are usually willing to extend them to those with less-than-perfect credit. To improve your credit gradually, use the card for small expenses, and pay it off every month. After some time, you should be able to convert it to a traditional card or apply for another account altogether.

If you want to regain your financial footing by discharging applicable debts, turn to William C. Rieth. Practicing out of Monroe County, NY, this seasoned bankruptcy law attorney has more than 25 years of experience in the legal field. Attorney Rieth is proud to help both individuals and businesses get out from under an overwhelming amount of debt. He is well-versed in all aspects of debt relief, including chapters 7, 11, and 13. To request more information about the bankruptcy law services he provides, fill out the form on his website or call (585) 232-6520.