There is no worse mark a person can have on their credit report than a bankruptcy in Illinois. Bankruptcies wreck credit and stay on someone’s credit report for up to 10 years. It’s easy to focus on those facts after a bankruptcy and become emotionally distraught. However, there’s another side to bankruptcy that is just as important to recognize. Serious financial problems have been wiped away with the help of an experienced bankruptcy attorney. Recovering from bankruptcy takes some time and work, but it can also happen much more quickly than many people realize.

Take some time to appreciate how bankruptcy has positively changed your life. The phone calls have stopped. Until the bankruptcy filing, creditors probably called at virtually all hours of the day and night. Also, the increasingly impossible mission of trying to pay creditors each month is over. The savings account is gone also, but it’s possible to re-grow that account and much easier to pay bills after bankruptcy.

Make sure the difficult times don’t return. It’s now time to consider the reasons for bankruptcy. Your bankruptcy attorney can help in this area. Write out a realistic budget and focus on building up an emergency bank account. Financial experts say everyone should have at least several months of income in savings put aside in an emergency account.

Rebuild credit. One of the first things to do following a bankruptcy in Illinois is to apply for a new credit card. The only way to rebuild a credit picture ravaged by bankruptcy is to pay all bills on time. A credit card that reports to the three major credit bureaus is essential. Don’t be surprised if you start receiving credit offers immediately after the bankruptcy and don’t hesitate to ask your bankruptcy attorney for advice. The fees may be quite high; however, so a secured card could be the best option. A secured card is one in which the cardholder supplies the money for the card balance. By paying bills on time, a credit score that may have dropped into the 500s or even the low 400s after bankruptcy can bounce back to 650 or higher in a year or less, according to credit experts.

Be choosy with car and home loans. Don’t think that car and home loans are now out of reach. It’s possible to get loans within a year of a bankruptcy. The interest rates may be quite high, however. Be aware of your credit score at all times, and ask lenders what score is necessary for their rates to drop. Think long and hard about waiting several months or longer for your credit score to increase to that point.