Filing for bankruptcy for bankruptcy is likely a major decision. It may come once you realize that you won’t be able to pay for life’s necessities while keeping up with debt payments. Once you file for bankruptcy, you will notice a negative impact on your credit.
While it may seem disheartening to realize how the bankruptcy affected your credit, you can start to recover and start to rebuild your credit almost immediately. The bankruptcy filing will remain on your credit for 7 to 10 years, but you can take steps during that time to improve your credit far beyond what it is at the start of the process.
Use what you learn
As part of your bankruptcy, you will have to go through credit counseling and debtor education. Both of these opportunities should give you the tools you need to make decisions that can positively impact your credit.
Start with secured options
You may not be able to obtain new lines of credit while your bankruptcy is open, but you should plan to start rebuilding your credit with a secured credit card or line of credit as soon as you can. Paying this on time shows a history of financial responsibility, and it may lead to you being able to obtain unsecured lines of credit or higher credit limits sooner than you might have otherwise expected.
Filing bankruptcy is often a responsible decision that allows you to take control of your finances. Ensuring that you learn about the options you have for filing and choosing the one that best suits your needs is important. This may be easier if you work with someone familiar with consumer bankruptcy.
