Post-Bankruptcy Considerations

What happens to my credit rating after bankruptcy?

The bankruptcy will be listed on a credit report for a period of ten years. However, it is critical that you re-establish your credit after the bankruptcy discharge. This can be done by ensuring that all monthly bills are paid on time. You may want to ask your bank about a credit card that is secured against your checking account. By making timely payments, your credit score will improve.

After bankruptcy, how do I re-establish my credit?

There are at least two ways to get credit after bankruptcy. First, one of your existing creditors may continue to grant you credit based upon a reaffirmation agreement made during the bankruptcy proceeding. Second, today there are several banks offering a secured credit card. This means that the credit limit is based upon the amount of security given. Note also that many creditors are more likely to extend you credit after you file for bankruptcy than before your filed. With all of your dischargeable debts wiped away, creditors view the debtor of now having more disposable income to pay the new debts. In addition, creditors know that the debtor cannot file for bankruptcy for another eight years, thereby shielding creditors from the bankruptcy laws during this time period. You may also reestablish debt by having someone co-sign a loan with you.

If I need to file bankruptcy again, how long do I have to wait?

You must wait 8 years to file Chapter 7 after receiving a discharge in bankruptcy. In certain situations, the Court may have granted a bar against you preventing a re-filing without Court approval. An attorney can tell you if a bar was ordered in a previous bankruptcy.