One of the common after filing bankruptcy questions people ask is, “What happens with Bankruptcy and your Credit? Will I be able to establish credit after my bankruptcy?” The answer is Yes. It can take time but you can rebuild your credit the same way tens of thousands of people have rebuilt their credit. The credit card companies like to perpetuate the myth that once a bankruptcy appears on a credit report, it will prevent you from getting credit ever again.

It is true that bankruptcy is a negative on your credit report. However, once you have filed bankruptcy, you no longer have any debts on your credit report which can make you more attractive to a lender After filing Bankruptcy Chapter 7 or Bankruptcy Chapter 13 you can actually raise a bad credit score. In addition, once you have filed for bankruptcy, you can’t immediately file again. It is however important that you have a regular reliable source of income that will allow you to repay credit once it is extended to you so that you can afford to make any payments.

Rebuilding your Credit

At the start, you may have an application fee or have to pay a higher interest rate, or take out a secured credit card. Once you show you are a good credit risk, the interest rates will go down.
Use any credit cards that you take out in moderation and pay them off. You can use secured credit cards to rebuild your credit. However you should not always pay the credit cards off in full. We will explain to you how you can help rebuild your credit by not paying off your bill in full and doing the opposite of what you would expect.

You will also find that you can purchase a car after filing for bankruptcy although you may have to pay a higher interest rate.

Usually about 24-36 months after you have received a bankruptcy discharge you should be able to get a mortgage at a decent interest rate. You may also find that you can also refinance a home while under a Chapter Plan, especially if you have equity in the property.

You should get a free copy of your credit report after filing bankruptcy to make sure that the report is accurate.

For more information on life after filing bankruptcy or to ask questions about Bankruptcy and Your Credit Call the Law Offices of David M. Offen at 215-625-9600.