Credit After Bankruptcy – It Is Possible!


You might think that your credit life is over after declaring bankruptcy. There seem to be enough people shouting it from the rooftops, after all. Don’t worry, if you’ve declared bankruptcy there are plenty of relatively painless ways to get a good credit rating back!

Watch Your Credit Reports

If you have ever considered signing up for one of those monthly credit monitoring services, now is the time to do it. It’s a good idea to keep an eye on your credit reports after you file for bankruptcy because you will want to make sure your creditors are reporting your account as being included in your bankruptcy. If not, contact them or file a dispute with the credit reporting agency to have it corrected.

This might seem strange because you want as few people as possible to know about your bankruptcy, right? Don’t worry, you’re bankruptcy will show up separately so potential creditors will already know about it. What matters is that potential creditors can’t consider any accounts that were included in the filing. The bankruptcy is a ding, but the other accounts are essentially wiped clean from your credit slate – score one for you!

Reaffirm Important Loans

If you have a loan for a home or vehicle you plan on keeping, talk to your bank about reaffirming the loan. If you reaffirm your loan you agree to continue making payments on the loan in spite of your bankruptcy, essentially signing a new agreement so your loan will stay intact and you can keep your automobile.

Reaffirming your loan will not only help you keep your home, it will also instantly start putting good credit history back into your credit rating from day one after filing for bankruptcy. Just make sure to follow up on your credit reports to make sure your bank is showing the payments as on time instead of included in your bankruptcy.

Pre-Approved Catalog Credit

You might have seen those catalogs in your mailbox that say you are pre-approved for a certain amount of credit to buy merchandise from them. Don’t throw them away. These catalogs can work wonders for rebuilding your credit if they report their accounts to the credit bureaus. Call and ask if they report to the bureaus and buy a few things that you like if they do. Then watch for your new credit account to show up on your credit reports and pay off your bill as soon as possible to avoid paying the interest charge.


They say time heals all wounds, and that certainly applies to filing for bankruptcy. Bankruptcy is meant as a way for struggling people to wipe their credit slate clean, removing bad payments and judgments from your credit score. While you will still be able to see the accounts on your report, the fact that they no longer affect your score can actually leave you with a better score even immediately after your bankruptcy is discharged. The filing itself will take 10 years to come off your report history, but it really is possible to rebuild your credit well before then. Don’t wait for that one bad mark to go away before you start living your life again!

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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