Rebuilding Your Credit After Filing For Bankruptcy
Many debtors mistakenly believe that they will be unable to obtain any new credit for 7-10 years after filing bankruptcy, but in most cases that couldn’t be further than the truth. Although a bankruptcy does remain on your credit for 7-10 years most debtors receive offers from creditors to obtain new credit almost immediately after their discharge in the case of a Chapter 7 or their confirmation in the case of a Chapter 13.
The first step that debtors can take to rebuild their credit after filing for bankruptcy is to obtain a copy of their credit report and make sure that all of the debts they listed in the bankruptcy are showing on their report as being closed in bankruptcy with a $0 balance.
The second step is to obtain new credit. It may sound counterintuitive, but in order to rebuild your credit you must have some sort of credit. You may only be able to start out with a secured credit card but over time your credit limit will be increased and eventually that secured credit card will become unsecured.
Finally, make sure you keep your new credit up to date! Make your payments on time each month and slowly but surely you will one day be able to proudly say that you have “good” credit.