The New Year is traditionally viewed as the time for turning over a new leaf and starting fresh. Though resolutions about diets and exercise regimens are quickly forgotten, those who’ve filed for bankruptcy can take the opportunity to make a real change and work towards financial recovery as the calendar turns from 2020 to 2021.

Once you’ve filed for bankruptcy you start with a clean economic slate, there are certain steps you should be taking to advance rebuilding your credit and making sure that you are able to move forward with the least amount of residual damage. Below you’ll find the most important steps for you to take to give yourself the best chance of a much happier, financially healthier new year.

• Request current versions of your credit report from all three credit bureaus to ensure that your bankruptcy filing is included and the debts that have been discharged are shown as being subject to bankruptcy protection. After the bankruptcy is discharged the status will shift to reflect that. You can access this information once a year for free, and if you find that any debts have not been corrected you can submit a dispute to the credit bureaus, including copies of your bankruptcy paperwork to make the process as straightforward as possible.
• Build a new credit score by opening new accounts. This is an incremental process, as initially there will only be a limited number of credit types available to you. Check out secured credit cards or small credit builder loans or ask if you can become an authorized user on somebody else’s credit card.
• Learn the basics of what impacts your credit score. Though you may think yourself an expert on bad credit after having gone through a bankruptcy, you may not know what leads to good credit. The most important factors are making on-time payments on the accounts that you open going forward and using your credit cards and paying them in full every month. It is also helpful to make sure that you have a variety of types of credit accounts, including credit cards, loans and installment accounts like auto loans or mortgages. What is most important is staying current on all of them.

The road back from bankruptcy is a long one, and you can’t expect to have good credit again for a while, but if you work consistently and intelligently towards economic responsibility, you’ll get there sooner. If you need guidance on filing for bankruptcy, contact our experienced bankruptcy attorneys today to set up a time to meet.