Bankruptcy Credit

     Bankruptcy credit should be one of the top concerns for the debtor.  A bankruptcy filing leaves the debtor with a bad credit history.  The fact that the debtor filed for bankruptcy will be on his credit record for seven years for a Chapter 13 bankruptcy filing and ten years for a Chapter 7 bankruptcy  filing.  The bankruptcy filing means the debtor is not a good credit risk.  He has to prove the opposite to re-establish credit.  If the debtor does certain things after filing bankruptcy, he can re-establish a good credit record.  This should be one of the priorities of the debtor.

Getting Post Bankruptcy Credit      

     What are some of the things a bankruptcy filer can do to obtain post bankruptcy credit? The hardest credit to obtain will be the first.  Once they get that first post bankruptcy credit card or loan in the post-filing period, subsequent credit will be easier to obtain.  The further out in time from the filing date, the easier it will be to get credit if the filer is careful to re-establish himself as credit worthy.

     One of the first things the debtor should do is to join a credit union or savings plan and make regular contributions. This will show up on the credit report.  If the debtor can't do this, then open a savings account and make regular contributions.  This will also show up in the plus column on the credit report.  Also, make sure your credit report is current.  If your bankruptcy resulted in the discharge of debt, make sure those old debts aren't showing up as current.

Establishing Post Bankruptcy Credit

     Other ways of establishing post bankruptcy credit are to get a credit card and a small loan. The terms may not be too favorable for the credit card, the interest rate may be higher and the credit limit may be lower, but it establishes credit.  Make sure the monthly payments are on time and use it sensibly.  The small loan may require a good faith account with a minimum balance, but make the monthly payments on time to prove your creditworthiness.  All of these little things are ways to re-establish credit yourself and obtain post bankruptcy credit.

     Looking in the phonebook or on the internet will show that there are many banks and loan companies that service the bad-credit market and people who have filed for bankruptcy. This is their niche in the market.  Many of them will take an application, evaluate it and find an appropriate lender.  There may be certain rules and less favorable terms, like money secured in an account as a guarantee of payment, but this lets the borrower get the post bankruptcy credit he needs to build a clean credit history in the post-filing period. The borrower cannot be discriminated against solely on the basis of having filed for bankruptcy. Find a reliable lender and make sure they are reputable before you deal with them, as with any entity.  The important thing is to rebuild your post bankruptcy credit.