People who file for bankruptcy in New York may experience a variety of feelings, such as shame, embarrassment, relief and fear. While this can be a challenging time, it is also the opportunity to begin fresh and start anew. To avoid getting into financial trouble again, there are certain tips one can follow to bounce back quickly. 

According to Forbes, the effects of bankruptcy do not necessarily last long if one practices restraint and responsibility. In fact, most people begin to rise above a fair credit score after an average of two years. People can also apply for a mortgage with minimal financial penalties after three years. 

One effective thing to do is to recognize why one filed in the first place. It may have been something out of one’s control, such as an unexpected medical emergency or job layoff. For others, financial irresponsibility is the reason, and this is when the person needs to craft a plan to avoid getting into debt again. This includes making and following a budget based off cash flow, paying all bills in full and on time, leaving the credit card at home and setting up automated payments. 

According to CNBC, getting a secured credit card is a good start to building back credit. This requires a down payment, which goes toward the credit limit. After around 12 months of on-time payments, most people will qualify for an unsecured credit card. 

After a bankruptcy, it is important to stay on top of one’s credit report to ensure he or she is no longer liable for past debt. Dealing with any questionable changes or inaccuracies needs to happen right away so it does not affect future credit scores.