Filing bankruptcy is one of the worst things you can do as far as credit scores are concerned. Taking the step into bankruptcy will stay with you and your credit report for ten (10) years. You’ll be “marked” as a higher risk and most likely your only option for obtaining extra money will be personal bad credit loans.
Ten years of being considered high risk and when asked by law you will have to declare that you have had a bankruptcy. Obtaining loans will be very difficult and with any luck you would be able to get bad credit unsecured loans. Every transaction involving credit will now involve many formalities.
If you do obtain any loans you will probably still be pestered by the collection agents and reminded constantly that it is important for you not to default, and to make payments on time, etc. If bankruptcy is unavoidable for you it is important now, after the fact, to learn about how to repair your credit.
Even after a bankruptcy, you need to get your credit history report yearly. Check it and make sure it is accurate and error free. If possible it is best to hire someone at a credit agency to monitor and keep track of your personal credit score and then advise you if there are any disputes.
Next, you should obtain a secured credit card. Secured credit cards provide you the same benefits of the unsecured ones. Spending your own money as it were a credit card, backing up your finances and starting to rebuild your credit.
Between monitoring your credit history report and keeping a secured credit card and making payments, your credit score should go up over time. Keeping in mind that you must work at it, maintain it and keep it good. Fixing your credit score after bankruptcy is possible, but you will have to keep it that way as well.
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