If you decide to file for Chapter 13 bankruptcy, you need to realize upfront that it will have a negative impact on your credit rating. There is no way around this, so you need to come to grips with this fact as soon as possible.
Despite the impact, it doesn't have to drag you down forever. You can begin to rebuild your credit as the months go by.
One of the first things you should do is review your credit report for errors and missing information. If something is wrong, get it fixed as soon as possible.
With a bankruptcy filing remaining on your credit report for as long as 10 years, it can take some time to make progress in regards to improving your score. Even so, there are basic steps you can take to move in the right direction.
For example, make sure you are paying all bills in full and on time. You don't want to do anything else to harm your credit score at this time. Also, don't shy away from using a secured credit card. This is a good way to prove that you learned your lesson and have what it takes to be responsible with your money.
It's easy to assume that your credit is ruined forever after a Chapter 13 bankruptcy filing, but this doesn't have to be the case. You should learn as much as you can about the impact it will have on your credit rating, as well as the steps you can take to make a positive change in the near future.
Source: Bankrate, "Bankruptcy timeline: Rebuilding credit," accessed Nov. 16, 2017