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Rebuilding credit an important task after bankruptcy process is complete

Last time, we spoke briefly about the impact bankruptcy will have on a debtor’s credit score. As we noted, filing for bankruptcy will cause an immediate and significant drop in one’s credit score, and the filing itself will remain on one’s credit report for a number of years.

For those who are in serious financial hardship, taking a significant hit on their credit score is worth the relief bankruptcy affords. As we’ve noted before on this blog, whatever form of bankruptcy one files for, the potential for financial relief is significant. After the process is completed, though, debtors must work to build back up their credit, and this does take some time. 

One of the important steps to take in rehabilitating one’s credit is to make sure that debts which have been discharged in bankruptcy are cleared from one’s credit report. Debtors should do this periodically to make sure they are really benefiting from the bankruptcy.

Another important thing to do is to begin the process of building up responsible use of credit. After bankruptcy, it may be tempting to completely avoid credit so as to avoid getting back into debt, but doing so will only slow down the recovery process. Among the ways of doing this is applying for a secured credit card or a credit-building loan. Making wise use of what is available can help one to move the process along rather than simply waiting for the bankruptcy to disappear from one’s credit report. Those who proceed in this way are able to build their credit back up slowly but surely. 

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