Rebuilding your credit after bankruptcy

On Behalf of | Dec 19, 2022 | Bankruptcy

You did your best to stay on top of your debts, but it just wasn’t feasible. You considered all of your options and decided that filing for bankruptcy was the best way to go. Bankruptcy is often portrayed as a negative, but it can offer people a chance to start again.

One aspect that is causing you concern is your credit rating. Bankruptcy will impact your credit in the short term, but does this last indefinitely? In short, the answer is no. Outlined below are a couple of things to consider when trying to rebuild your credit after bankruptcy.

Focus on the essentials

You may be contemplating numerous complex ways of rebuilding your credit. It’s often the simple things that make the biggest difference. Try to focus on paying your bills on time every time. Simply paying your phone bill, paying your credit card balance in full and handling all of your other household expenses can really impact your credit in a positive way.

Create an emergency fund

Whenever you can, try to put a little bit of money away. Pre-bankruptcy, you tended to live from paycheck to paycheck. An overwhelming number of bankruptcies are the result of unexpected expenses such as medical bills. By putting a little away each month, you’ll soon have a sizable emergency fund that can help you if something comes up.

It can take a little time, but it’s certainly possible to rebuild your credit after filing for bankruptcy. Proactive measures are always the most beneficial, so make sure you have solid legal guidance throughout the bankruptcy process