You will need to pay your bills on time.

Answer Applies to: Washington
Replied: 1/18/2012

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Most people recover within two years after filing bankruptcy because bankruptcy is a way to improve your credit. Other methods, such as debt settlement, will actually take longer to rebuild.

Answer Applies to: Colorado
Replied: 12/28/2011

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Pay your bills on time and open new accounts as debit or prepaid accounts.

Answer Applies to: California
Replied: 12/21/2011

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There are a number of books published on the subject about the little things one can do to quickly rebuild credit after bankruptcy. One thing is to get secured credit cards and pay them off right away to have accounts in good standing. Car loans and reaffirmed mortgages also help rebuild credit after bankruptcy.

Answer Applies to: Indiana
Replied: 12/18/2011

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It will improve faster than you think, just pay your bills on time.

Answer Applies to: Florida
Replied: 12/16/2011

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Yes if you are responsible and build your credit following a bankrutpcy its possible to build a mid 600 score in 2 years or less.

Answer Applies to: Utah
Replied: 12/16/2011

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A bad structure merits tearing down and building from the bottom up. And the structure's already broken (or heading that way), isn't it? Bankruptcy helps restore bad credit: all those high unpaid balances get literally zeroed out. Suddenly, you're much better able to repay new loans as you're no longer stretched thin saddled by stale liabilities. This answer (as well as our Web site) doesn't address all facts & implications of the question; it's general info, not legal advice to be relied upon; it creates no attorney-client relationship; it may be pertinent to CA only; it's independent of other answers. Hire legal counsel before acting or refraining from bankruptcy/legal action.

Answer Applies to: California
Replied: 12/16/2011

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After you file for bankruptcy, you need some credit in order to repair your credit. I recommend clients get a credit card and use it to repair your credit. Once you file, you should get credit card offers within six months. Now, you need to be very careful since many of these cards will have set up fees, monthly fees, high interest rates, and low lines of credit. For example, a credit card with a $300 line of credit can have over $200 in set up fees (these are costs just to get the credit). So, be very careful which card you accept. But once you have a credit card, use it on a monthly basis to pay for necessities and then pay it off every month. Or leave about $10 and pay off the rest. Do this every month, do not carry a high balance, and whatever you do make sure there are no late payments. This will help restore your credit. Again, be careful not to get into credit card debt.

Answer Applies to: California
Replied: 12/16/2011

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Depending on a variety of factors, bankruptcy may not be your only option. If you have a reasonable hardship in repaying your unsecured debts, but you earn income and can set aside sufficient funds on a monthly basis then you may be able to satisfy your debts for less then what you owe through a process of debt negotiation. Both bankruptcy and debt negotiation will have a negative impact on your credit score for a period of time. The good news is that your credit score will rehabilitate over time with either method. Also, depending on your assets and income, you may not qualify for bankruptcy in your jurisdiction. It is important to consider all options available to you and to understand the advantages and disadvantages of each one. You need to take into account how much debt you have outstanding, the type of debt, and your ability to repay a portion of it. It is advisable to consult with an attorney that offers assistance with multiple methods of debt relief to help determine what might be best for you.

Answer Applies to: New York
Replied: 12/16/2011

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While it is not something that creditors will admit, the fact is that *bankruptcy will more than likely raise your credit score*. Here is why. Your credit score is a calculation by the Fair Isaac Corporation (FICO) that takes 2 measurements into account: the relationship between monthly debt service and net income; and your payment history. You are probably already behind on some monthly payments and your monthly debt service has probably outstripped monthly discretionary income already. The effect of bankruptcy will be to reduce your monthly debt service (Ch. 7 and Ch. 13). If you file a Plan of Reorganization then you will also be reestablishing an on time payment record with the Trustee (Ch. 13). Any way you look at it, bankruptcy may well be the best thing that has happened to your credit score in a long time. Feel free to contact our office if we can be of further assistance.

Answer Applies to: Illinois
Replied: 12/16/2011

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Many debtors begin receiving credit card offers before their bankruptcy cases are even closed. They represent one way in which you can rehabilitate your credit score through careful use and payment of the debt.

Answer Applies to: Massachusetts
Replied: 12/16/2011

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You'll be surprised at how many companies offer you credit after filing. You are a safer risk after the bankruptcy than before because you don't have all those other people trying to collect. Your credit score sometimes improves after filing.

Answer Applies to: Texas
Replied: 12/16/2011

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If you file, then you will become a good credit risk because you can not file another chapter 7 for 8 years. So you will get credit card applications immediately after filing and you can even get a mortgage 2 years after your bankruptcy discharge, if you are paying your other debt on time.

Answer Applies to: New York
Replied: 12/16/2011

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Yes, bankruptcy could even help your credit score. If you file chapter 7 and discharge your debts, your credit will report all discharged debts with a $0 balance, reducing your overall debt. If you have items such as student loans or a car payment, paying them on time after bankruptcy will help you rebuild your credit. There are also services out there that will help you increase your credit scores.

Answer Applies to: Florida
Replied: 12/16/2011

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Pay your utilities on time.

Answer Applies to: South Carolina
Replied: 12/16/2011

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Your best bet is to open a few lines of credit if you feel you can be responsible with them, pay them in full in a timely fashion and be sure to use little of the credit extended to you (i.e. do not feel like you need to take advantage of the entire credit limit afforded to you ifyou can get by on using only a small percentage of it). Also, diversify the types of credit you have. Lenders like to see borrowers who have not only credit card lines of credit but maybe a mortgage that is current, an auto loan, a student loan, a small business loan, etc. These can all help. But there is no substitute to restraining yourself from borrowing more than you can afford.

Answer Applies to: New Hampshire
Replied: 12/16/2011

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You will improve. But if you don't have a lot of debt you should first consult an attorney.

Answer Applies to: Florida
Replied: 12/16/2011

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Believe it or not, bankruptcy will in the end improve your credit. Crazy? Think about it - your credit is already blown. If you do nothing, it will continue to be lousy indefinitely, and possibly get worse with judgments. You can't start over. Bankruptcy gives you the start over point you need. Happy to answer any more questions you may have.

Answer Applies to: California
Replied: 12/16/2011

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You start applying for credit after your bankrutpcy case is closed. You might have to get a secured credit card at firs until you have a record of timely payments. That will require that you deposit an amount of money at the bank that gives you the credit card and if you don't pay the money is taken from the account. If you have a good job you should be able to have relatively good credit in two or three years and even be able to buy a house in three years.

Answer Applies to: California
Replied: 12/16/2011

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Only time will cure your score.

Answer Applies to: Florida
Replied: 12/16/2011

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Try a credit counseling service first.

Answer Applies to: Georgia
Replied: 12/15/2011

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You might want to consider avoiding bankruptcy by making arrangements for payment through a non-profit credit counseling program. When you complete your payment plan your credit report will have positive entry. If you file for bankruptcy it will stay on your credit report for ten years. Most people filing for bankruptcy eventually become eligible for some credit. This might take a year or so.

Answer Applies to: California
Replied: 12/15/2011

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In many cases filing for bankruptcy improves your credit score. This depends on where you are to start with. Bankruptcy is never your only option, but it is sometimes the best option.

Answer Applies to: Colorado
Replied: 12/15/2011

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In general, credit scores improve shortly after bankruptcy because your financial picture improves. As to whether bankruptcy is your only option, you should consult with an experienced bankruptcy attorney to discuss your situation in detail.

Answer Applies to: Maryland
Replied: 12/15/2011

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Bankruptcy does not ruin your credit. The bad reports from creditors due to slow pay and ongoing delinquencies ruin your credit. Your credit score, if your bankruptcy is handled properly, could be up over 700 in a year or two. And in fact, FHA will grant a home loan to a person who discharged a chapter 7 in 2.5-3 years. However, you must be diligent in paying on time after the filing, and follow instructions from your attorney that will help your credit improve more quickly.

Answer Applies to: Florida
Replied: 12/15/2011

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.