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Chances are you didn’t fall into a bad financial situation overnight. For most individuals, the decision to file bankruptcy usually comes months if not years after their financial struggle first began. Just as it may have taken you a long time to get to the point of bankruptcy, it will likely take just as long to re-establish your credit once your bankruptcy has been discharged. Although your credit will suffer a bit after bankruptcy, depending on how long you have been struggling with finances it may not make much of a difference.

Bankruptcy essentially wipes out or restructures your debts. It is designed to give individuals a clean slate and fresh start when it comes to their finances. Even though you may be in a better position to pay debts after bankruptcy, the damage it has done to your credit will likely have lenders viewing you as a high-risk borrower. Fortunately, you will not be considered a high-risk borrower forever, and there are steps you can take soon after your discharge that may help re-establish and repair your credit faster.

One of the most beneficial things you can do after filing bankruptcy is to budget wisely and consistently pay bills on time. Even though this is the ideal model for borrowers to follow, actually doing it may be much harder than you think. It is typically advised that consumers focus on managing their current bills before applying for new credit.

It is important to understand that not all credit accounts are created equal. While you may not be approved for an unsecured credit card soon after bankruptcy, you can receive the same credit building benefits through a secured credit card. Timely payments and responsible spending may lead to relatively quick improvements to your credit score.

Rebuilding credit after bankruptcy is difficult but not impossible. If you are considering bankruptcy and would like to know how it may impact your credit, consider speaking to an attorney. They may be able to help identify ways you can repair and rebuild your credit after bankruptcy.