Bankruptcy is a powerful tool, allowing borrowers to liquidate or restructure their debts and achieve a second chance at life. While pursuing these debt-relief options will have a negative impact on your credit history, many borrowers can fully recover within a few short years with careful financial management and the advice of a professional. Here are a few tips for rebuilding your credit after filing for bankruptcy.

3 Tips for Rebuilding Your Finances

1. Start Saving

Liquidating your debts in a Chapter 7 bankruptcy typically leaves room in your budget—resources that can be used to build future financial security. Try to save up at least enough for three months’ worth of living expenses to protect against job losses, medical emergencies, or other unexpected expenses.

2. Set a Budget

Establishing and sticking to a monthly budget is the key to rebuilding your credit report and getting your finances under control. Tracking your spending for a few months will help you decide how much you need for essential living expenses and what you should do with the funds left over.

3. Start Using Credit Responsibly

After filing for bankruptcy, many borrowers can still get approved for store charge accounts or a secured credit card. To begin rebuilding your credit, be sure to pay your bills on time and repay your balances in full every month. Soon, you should be able to qualify for an unsecured credit card and might be able to finance a car within a year or two.

With offices in Columbus and Lancaster, OH, Zellar & Zellar, Attorneys at Law, offers high-quality legal advice and creative solutions to struggling borrowers throughout the area. Their experienced, compassionate attorneys take a personal approach to every case and will help you find debt-relief options that are tailored to your needs. Visit their website to learn more about the benefits of bankruptcy. To schedule a free evaluation, call (614) 257-1643 for their Columbus office or (740) 277-2700 for the Lancaster location.

This article is intended to provide general information and should not be construed as legal advice or in creating an attorney-client relationship.