After Bankruptcy, What Are Some Good Ways To Rebuild Credit?

Q: What does a bankruptcy do to your FICO score? After bankruptcy, what are some good ways to rebuild credit?

A: That should be the least of your worries. If you are overindebted, your creditworthiness (and never mind your score) will increase very quickly and you will be inundated with offers. As time passes, your score will increase too. After ten years, of course, mention of bankrtuptcy disappears (unless you are foolish enough to mention it yourself in a "voluntary comment", as some have done...) "Rebuilding credit" is, or should be, less of a concern than you seem to make it out to be. If you can succeed in keeping a credit card that happens to have a zero balance through a Chapt. 7, so much the better. But anyone who has filed for bankruptcy should think in terms of forswearing credit, and pay off credit card bills 100%. In fact, s/he should be using debit cards. In most cases you are going to be paying a usurious interest rate even before bankruptcy. If you are lucky (and if you live in a state with a decent homestead exsemption) you may keep your mortgage in place. Otherwise, there are ways of avoiding the mortgage interest penalty, perhaps using an inter vivos trust with a parent or spouse etc. as settlor. But such antics are beyond the scope of this ng.

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