It is important for debtors to know that the major credit reporting agencies should remove a bankruptcy filing from an individual's credit after 10 years for a Chapter 7 bankruptcy and after 7 years for a Chapter 13 bankruptcy. Debtors who have faithfully complied with court ordered repayment plans and/or bankruptcy proceedings can rest easy knowing that a once tarnished credit report will no longer hinder them from reestablishing buying power and future credit. As stated, a Chapter 13 bankruptcy proceeding vanishes from the debtor's credit report after 7 years while a Chapter 7 vanishes after 10 years as if they never even existed. With that being said, the debtor does not need to wait long for the credit offers to start pouring in post bankruptcy discharge. Many people fear filing bankruptcy because they are under the impression that they will never be able to get credit again, or at least not for many years post bankruptcy. This is far from the truth. Usually within a few months the debtor will be start receiving offers for credit to begin the rebuilding process. Bankruptcy was designed to help financially distressed individuals get a fresh start, not to punish them in their financial future.
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A good way to rebuild credit after a bankruptcy filing is to buy a car. Many auto dealers, especially the smaller dealers, do not penalize people for bad debts and bankruptcies. The interest rates may be a little higher, but the individual can use this type of financing to reestablish a solid payment history. After a bankruptcy filing the debtor should make sure that the current credit reports accurately reflect the discharged accounts. A good way to do this is to go online and obtain credit reports from the three main reporting agencies. Usually an individual can do this once a year free of charge. Make sure to review the credit reports carefully. If any discrepancies are noted, contact the reporting bureaus personally to ensure that the information is updated and properly recorded. Another way to reestablish good credit is to get a credit card since many offers will be made available to the debtor post bankruptcy discharge. Purchasing items and diligently paying them off in a timely manner each month will quickly help to establish a positive payment history. The individual must make sure that they use their new financial beginning responsibly and not make the same mistakes that got them into trouble in the first place. An individual post bankruptcy filing should remember advice learned from their bankruptcy attorney during the process. Also they should take into account the information gathered with credit counseling and the financial management courses that were required by the bankruptcy court. Following this simple rules and a little common sense can make the debtor have a successful future with the bankruptcy filing in their past.
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