If you have recently filed for bankruptcy, you may be wondering what impact it has had on your credit score and what steps you can take to correct them. You should know that it is completely possible to repair your credit and to make it even stronger than it was before you filed for bankruptcy. In fact, if you had lots of unpaid and constantly mounting debts on your credit report before, filing for bankruptcy may have already improved your score. One case of bankruptcy proceedings is not nearly as harmful as having several unpaid debts showing up. However, this does not mean that you shouldn’t still take steps to correct your credit.

The type of bankruptcy you filed also plays a role in how long and to what extent the proceedings will affect your credit score. For example, if you filed for Chapter 7 Bankruptcy, the most common type of bankruptcy in the United States, then you can expect this to impact your credit for a period of ten years. With Chapter 13 Bankruptcy, the bankruptcy will show up on your credit report for seven years. Furthermore, filing for Chapter 13 Bankruptcy is generally less frowned upon than Chapter 7 Bankruptcy. This is because when you file for Chapter 13, you are still responsible for paying off your debts yourself while being subject to the terms of a court approved bankruptcy plan.

Even if you filed for Chapter 7 Bankruptcy, you can still improve your credit score. You will notice, at first, that you have difficulty getting loans, credit cards, and any other type of credit that you may need. Securing housing and employment may also prove difficult. If you start small, however, you will soon find that you are eligible for more advanced forms of credit. You might have to work with special companies or lenders that specialize in dealing with those individuals who have filed for bankruptcy or have poor credit, but doing so wisely will ensure better credit in the future. These companies often have higher than average interest rates, so you’ll have to be careful not to go over your credit limit or to get yourself in over your head again. Budget properly, seeking credit counseling or debt management classes if needed, and always, always pay your bills on time. Maintaining a stable employment history and a stable housing history will also cause your credit score to go up. Likewise, opening a banking account and keeping the balance positive at all times will ensure needed points on your credit report. Rebuilding credit history after bankruptcy can take a while, but if you follow these steps, you will soon find that your credit was even better than it was before the bankruptcy. Bankruptcy does not have to be a negative thing. In fact, if you use it correctly, it can even help you to improve your financial future and live a better, more debt free life.