The decision to file for bankruptcy is often a courageous one. If you have accepted the challenging reality that you are very unlikely to be able to dig yourself out of tough financial circumstances anytime soon without some assistance, you may be feeling a strange combination of relief and anxiety.
Relief comes with knowing that the benefits of the automatic stay and a discharge are yours for the taking. Anxiety comes with knowing that filing for bankruptcy will negatively impact your credit for some time to come. Given that having solid credit can impact everything from your ability to secure housing to your ability to obtain employment, this is not an insignificant worry.
You’ve been brave enough to start taking steps toward building a stronger financial future by deciding to file for bankruptcy. Soon, it will be time to work at building that future as efficiently and effectively as possible once your bankruptcy case has concluded.
Tips to keep in mind
Lenders are primarily concerned with how someone has been managing their finances over the past few years. As a result, the negative impact that your bankruptcy will have on your credit will become less and less significant over time provided that you make responsible financial choices moving forward.
The single best thing you can do to rebuild your credit is to pay your bills on time, every time, obtain a credit and use it every few months. Pay if off in full immediately. Try not to carry any balance. Once you are able to open new lines of credit, you’ll want to keep your debt-to-credit ratio low. That means you shouldn’t be maxing out your credit cards and utilizing all of the credit you have available to you.
Finally, you’ll want to seek legal guidance to receive personalized feedback to help you determine how you can work to rebuild your credit as quickly and sustainably as possible.