Personal bankruptcy provides a path to solvency for borrowers who have become unable to meet their financial obligations, but it also causes an immediate and significant drop in your credit score. While this may seem like a permanent situation, it’s absolutely possible to rebuild a credit reputation after filing for bankruptcy. In fact, many borrowers are able to achieve results in just the first year. Making the most of these tips will help demonstrate financial responsibility and get your score trending in the right direction.

3 Tips for Restoring Credit

1. Review Your Credit Report

The bankruptcy should be noted on your credit report with all included debts marked as discharged. Unfortunately, lenders and the reporting bureaus often make mistakes, so obtain a free copy of your credit report and examine it closely for errors. If you find any mistakes, dispute them with the creditors and the reporting agencies as quickly as possible.

2. Make Remaining Payments on Time

For many petitioners, personal bankruptcy discharges most consumer debt, but you might still have some accounts that were not included. Plan finances carefully and make all your scheduled payments on time. Setting up automatic payments can help avoid unintended late fees, penalties, and negative marks on your credit report if you have trouble keeping track of due dates.

3. Use New Debt Responsibly

Store lines of credit and secured credit cards are relatively easy to obtain, even with a recent bankruptcy. Whichever lending product you get, never charge more than you can afford to pay off in a single month, and be sure not to miss any payments. Using your new credit responsibly will slowly bring your credit score up, potentially higher than it was before the personal bankruptcy filing.

If you’re burdened by unmanageable debt, an experienced bankruptcy attorney can identify the best options and help you reclaim your life. Brian R. Cahn & Associates, LLC has been assisting borrowers throughout northwest Georgia and Whitfield, Murray, Gordon, Bartow, and Paulding counties since 1991, providing the highest-quality legal service possible in a wide range of situations. Visit their website for more on your personal bankruptcy options, or call (770) 382-8900 to speak with a lawyer and schedule your initial consultation.