Many people hesitate to file for bankruptcy because they’re concerned it will cause irreparable damage to their credit. In turn, they continue to struggle and stress over their financial situation. The truth is, while bankruptcy isn’t a decision to take lightly, sometimes it’s the only effective solution for eliminating insurmountable debt. Additionally, those who remain committed to getting their finances back on track often rebound fairly quickly. Below are a few ways to be proactive about regaining your financial footing after your bankruptcy case is closed.

How to Recover From Filing for Bankruptcy 

1. Make a Budget

The first step you should take is to determine what caused your debt problems to begin with. This can help you recognize areas where you could implement better financial management. Then, make a list of all your monthly bills and income so you can create a budget. If your expenses amount to more than you’re earning, look for ways to cut back on spending.

2. Monitor Your Credit Report

All of the data that goes onto your credit report is used to calculate your credit score. As such, it’s crucial to make sure that information is correct. Any errors that have been recorded, especially when it comes to payment history and discharged debts, can negatively impact your rating. Check your report frequently for inaccuracies and notify the credit bureaus right away so they can fix it. 

3. Pay Your Bills On Time 

Payment history accounts for the largest percentage of your total credit score. Thus, you want to make sure all your bills are paid on time every month. Just one late or missed payment can drop your rating and reverse all of the hard work you put into improving your situation after you file for bankruptcy. It can help to set up automatic payments from your bank account so that you don’t have to worry about remembering different due dates.  

4. Strategically Open New Lines of Credit 

One of the keys to rebuilding your credit is proving you can use new lines of credit responsibly. However, this doesn’t mean you should go apply for a number of unsecured credit cards and loans. It’s better to start off with a secured card that you can deposit money onto and use to charge small amounts. Paying this off each month will help raise your credit score.

If you’re ready to take charge of your finances once again after you file for bankruptcy, reach out to William C. Rieth in Rochester, NY. As a practicing attorney with more than 25 years of experience in bankruptcy law, he can accurately assess your circumstances and help determine your best option for achieving debt relief. His firm has successfully guided countless clients through the process of filing for bankruptcy. Call (585) 232-6520 to schedule a consultation, or visit his website for more information on the services he offers.