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You can’t believe it actually happened. Maybe it came about quickly, or maybe it was a long time coming, something you’d avoided facing for as long as possible.

You’ve filed for bankruptcy.

It’s something you used to only read about other people doing, yet here you are. If you’re feeling ashamed and alone, don’t: According to statistics from Epiq Systems, there were over 1.3 million bankruptcy filings last year. You may also be feeling angry, relieved, depressed … and maybe a little bit tired.

But here’s something else you should feel: hopeful. Yes, there is life after bankruptcy. In fact, filing a Chapter 7 or Chapter 13 bankruptcy is actually the first, often necessary, step toward restoring one’s credit. And while the temptation might be to put all of this behind you and never look at another credit report again, taking the opposite tack will bring you more peace of mind — by actively managing your credit and finances now, you’ll be able to mitigate the impact your bankruptcy has on your future.

One powerful way to offset the effects of bankruptcy might seem counter-intuitive: Get, and use, a credit card. The goal here, of course, isn’t to rack up more debt (which can hurt your credit score), but to show you can make timely payments. In order to avoid more debt, pay off the balance each month. And avoid large balances, which can negatively affect credit scores. Most important, though: Make EVERY payment on time. If organization isn’t your forte, or you’re a proud procrastinator, pay your credit card bill when you first receive it or, better yet, sign up for an auto-pay option.

If you can’t qualify for an unsecured credit card right away, a secured card may be your next best option. These cards, which require a collateral deposit (typically the amount of your credit line), are an excellent tool for rebuilding credit. Bear in mind, however, they’re not all created equal: Fees can vary wildly, and some disreputable providers are more akin to subprime mortgage lenders. Look closely at all fee schedules, consider a trusted institution that you know (although not one that was included in your bankruptcy filing), and don’t balk at the higher interest rates — this card is not for carrying a balance, it’s for building good credit. Finally, be sure the card issuer reports your payments to the big three credit bureaus, and double check that the account isn’t flagged as being a secured card.

Ideally, after a few months of timely payments on your secured credit card, you’ll begin to get offers for unsecured cards, and you can switch to something with lower fees and interest rates.

A track record of timely payments, along with strict, careful budgeting to keep debt under control, can restore your creditworthiness way, way ahead of the typical 7-10 years it takes for a bankruptcy to be removed from your credit report. Taking charge now will only get you there sooner.

We all like immediate gratification, but quick fixes to credit repair are difficult to come by. The average amount of time required to repair credit and dispute information appearing on your credit report is six to eight months. But the year is still fairly new, and if all goes well, some of your financial resolutions still have the possibility of being met before the year is over. Although six to eight months may seem like an eternity,  there are things you can do to ensure that it’s closer to the six than the eight.

Filing a dispute with the credit bureaus is one of the most time-consuming credit repair options, but because correcting can error can make a real difference in your credit score, it is often worth the effort. The time required is due to the credit bureaus having to contact your creditors and do an investigation. Sometimes the result will be the credit bureaus trying to dismiss your claim out of hand, or require a great deal of information to proceed. It can take 45 to 60 days from the time that you send your initial letter of dispute to receiving a response – and the first response is often dismissive. Don’t give up, though – credit bureaus are required to investigate your claims.

Credit repair is important because it influences the interest rate you are able to obtain on everything you purchase. When buying a new car or home, it is your credit that determines the interest rate, not the down payment. Bad credit can exponentially increase the amount that you end up paying for major purchases. Credit repair is important regardless of your wage or status – bad credit scores are not limited to lower and middle class consumers but can strike anyone. While credit scores are often determined by your own choices – late payments, missed payments, or overextensions – many credit scores are lower than necessary because of errors on the report.  Repairing these inaccuracies can be crucial to your long-term purchasing power.

While Equifax and Experian both send your disputes on to the creditor in question, lengthening the response time, Transunion may help you speed up the credit repair process. Disputes filed with Transunion through Ovation Credit are sent directly to their system, and responses can take as little as 30 days.

While repairing your credit is one crucial component to maintaining a good credit score, paying on time, keeping your balance below 50% of the credit available, and using credit as a financial tool, not a crutch, are also important steps in achieving the kind of credit score that will let you improve your purchase power.

Just like the stores had Easter candy out before Valentine’s Day was over, tax time is coming soon. April 15 – or 17 – thanks to that oh-so-generous government extension that was granted for the filing of 2011 returns – is only a couple months away.

For many families, tax time is not as painful as it could have been, since last minute measures were enacted to protect some tax credits that may put money in your pocket. But before you get too excited about how to spend that money, we’d like to suggest doing something painfully responsible with your tax return.

We know, the dream vacation or the new car would be a lot more fun.

But a good tax return can really help to turn a bad credit score into a good one, and taking advantage of tax time in such a practical way doesn’t mean you have to give up your dream – just postpone it for a year. You’ll not only improve your credit score, but what financing you do get the next year will cost you less because of it. And really, given how quickly tax time comes each year, the time will fly by.

Depending on the size of your return, you can either pay off some smaller credit card balances completely or you may want to pay off enough on the balance of each of your credit cards to make sure they are each at less than 50% of the limit available. There is no one measure more critical to your credit score than keeping at least 50% of the credit line free.

In the short term, your tax return might by you some fun, but in the long term, if you put it to work for you by putting the return toward your credit card balances, it can significantly change your financial future. Better credit scores mean lower interest rates, better auto insurance rates, and better refinancing options for your home. Better credit ratings can even mean getting that job versus being overlooked (except in California, where it is now illegal to use credit scores in making hiring decisions).

This tax season, invest in yourself and your financial future. And next year, you can send us a postcard from Europe as you enjoy your dream vacation that is costing you less thanks to better credit!