How to Recover From Bankruptcy

Filing for bankruptcy is usually done as a last resort when credit card bills, medical bills or unexpected expenses become too much to handle. While the bankruptcy ruling stays on your credit report for ten years, you can start taking steps now to help you recover after bankruptcy and be on your way to good credit.

Things You'll Need

• Secured credit card
• Credit report

Instructions

1. Rebuild your credit with secured credit cards. You can only spend money already deposited into your account, and the limits are usually very low. Even though these are very different than the cards you were used to, they're an essential part of rebuilding credit. Look for a card that reports to the three leading credit bureaus.

2. Keep a very low balance or no balance at all on your credit card. Whether you are still on a secured card or have moved on to an unsecured account, having a low balance raises your credit score and allows you some leeway should an unforeseen event occur.

3. Learn from your mistakes. Look at the factors that led you into bankruptcy so you can avoid those mistakes in the future. Set up a savings account or create a budget to help you avoid those pitfalls.

4. Use your student loan or other installment loans to help rebuild your credit. Making regular payments every month increases your credit score. Paying off more than the minimum can raise it even faster.

5. Check your credit report. Make sure that none of the accounts wiped out in the bankruptcy are showing as still open. If you find mistakes, insist with the credit bureaus that those accounts are taken care of.