Credit Repair

Bankruptcy does deal a devastating blow to your score, but that doesn’t mean you can’t get credit afterward.

How quickly you’ll reestablish credit and how much you’ll pay for it will depend largely on your behavior after you file for bankruptcy. If you start handling credit responsibly-paying your bills on time, not running up big balances, and not applying for a bunch of credit at once-your score will begin to recover.

But it also will matter which lenders you approach for credit. Most mainstream lenders shun people who have filed for bankruptcy-sometimes just for the first few years, although sometimes for as long as the bankruptcy remains on your file.
Other lenders, though, may be willing to give you a chance. Before the credit crunch, it was fairly easy for people who filed bankruptcy to get new credit.

These days, people with a bankruptcy on their record may need more patience. Far fewer lenders cater to those with troubled credit, so rebuilding credit can take more time.