Unlike a Chapter 11 bankruptcy filing, a Chapter 13 bankruptcy does not discharge all of your debts: Instead, it reorganizes them and allows you to repay all or part of them over an extended period, usually three to five years. Chapter 13 is sometimes referred to as a wage earner’s plan because it is offered to those whose income is sufficient to – eventually – meet their liabilities. Still, even though your debts will be paid off, it can have a significant impact on your credit score, often lowering it by 100-200 points or more, being noted on your credit report for seven years, and impacting your ability to obtain credit in the future. It can also impact the rates you are charged for financial vehicles like insurance and the interest you’ll have to pay on loans. Here are some tips for how to counter that effect and rebuild this essential financial metric.

• The most important thing you can do is to stick to the repayment plan. Always make payments on time and in full.
• Check your credit reports regularly to make sure that the information they contain is accurate. All discharged debts need to be shown as closed.
• Apply for a secured credit card or credit builder loan to help you rebuild your payment history. Again, make sure all payments for these and any other bills are on time and in full, and avoid running up big credit card balances. Your credit use should always stay below 30% of the card’s limit.
• Avoid applying for multiple new credit accounts. You want to avoid hard inquiries on your credit report, as these temporarily lower your score.
• Learn about personal finance and credit management to avoid getting into trouble again. The more you understand about how credit works, the better off you will be. If you need help, get financial counseling.

In addition to these short-term strategies, it also makes sense to invest time into rebuilding trust with your existing lenders. You can do this by being responsible about your payments, whether for old debts or new credit accounts. The most important thing you can do is to be consistent and careful. Over time, your score will improve.