If you’ve declared bankruptcy, it’s important to know that your financial life is not over. Depending on whether you filed for Chapter 7 or Chapter 13 reorganization, you can take steps to reestablish a new and improved credit history.
First, regardless of the type of filing, access to new credit is going to be difficult to secure. Court permission may be needed. Lenders will view your charged off debt as a liability and will refuse credit or charge high rates to protect themselves.
But a new credit history can be established over time by paying bills on time and in full. Building up savings and staying out of debt will demonstrate financial responsibility. Eventually your new credit history will convince lenders that you’ve changed the behavior that led to your bankruptcy and they will take a chance with you.
Maintain your new discipline—paying any new debts down immediately and ahead of schedule, if possible—and your new financial life will take off.