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Credit Repair After Bankruptcy

credit-repairOne of the most difficult things about bankruptcy is the time that comes right after the process itself is completed.

As much as it can be a relief to be out of debt so that you can get on with the rest of your life, it is also the start of an immense new challenge: credit repair.

In addition, even though millions of Americans have had to file for bankruptcy in recent years, there is still a stigma surrounding it.

This often keeps people from consulting with their friends and associates on the best methods they can use going forward as they try to rebuild their credit.

That means that the challenges ahead are even tougher than they have to be.

Steps To Credit Repair After Bankruptcy

There are many things that you can do after a bankruptcy proceeding to speed things along a little bit as you try to build your credit score back up.

Check Your Credit Report Accuracy

One of the first is to make sure that the debts on your credit reports are noted as part of a bankruptcy settlement so that they do not show up as current debt.

While going through bankruptcy obviously hurts your credit, it’ll be even worse if some of that debt is still showing up on your report.

Create a Budget

Next, you should focus in on setting a budget and following it.

While tough economic times can make it impossible to avoid debt problems, once you come through bankruptcy, you really need to focus on making sure it never happens again.

Setting and keeping a budget is a good way to do that.

Apply for Credit

Once you’re comfortable with that, it is time to try to get another credit card.

Having an active credit history is critical to your credit score, and you need to demonstrate that you are capable of being responsible with a credit card.

You may need to start with a secured credit card, but no matter what it takes, it is worthwhile.

Make sure you don’t miss any payments on your new credit card. If possible, consider setting up an automatic bill payment to ensure that you are not late on any of your payments, as that would damage your score significantly.

Try to keep your credit card balances low until your scores have been repaired. It’s important to maintain the right credit-to-debt ratios, and you can learn more about credit utilization by reading my article

Continue Other Debt Payments

Likewise, if you have any loans that were not discharged during the proceedings, make sure you keep making payments promptly. One such example would be a student loan.

Utilization: Maintaining The Right Credit Balance to Limit Ratio.


  1. You make some very nice points in this article. I don’t think that when most people file a Chapter 7 or Chapter 13 that they even think about credit repair. The best point that you made in my opinion is that its very important to include everything on your credit report when going through a bankruptcy so that it won’t appear later on your credit reports as outstanding debt. Very Good piece!

  2. Good points Ryan – Americans are generally secretive about their finances, especially so when they are struggling to pay the bills. They won’t tell their friends, co-workers or their kids. Instead of being honest with others and themselves, they get further into debt trying “keep up appearances.” What our country really needs isn’t another bailout plan – it’s acceptance and education.

  3. I have to agree with Laura, education and exposure to good saving habits at a young age is something that many Americans could use more of. Nothing crushes your appearence like getting your home or vehicle taken in front of friends.

  4. Does the chapter 7 bankruptcy come off the credit report automatically after 7 years, or do you have to request that it be removed? Thanks Lance

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