After your bankruptcy you have a fresh start. Your credit rating, which for most people who are filing bankruptcy was already low, will start to improve.
When you file for Chapter 7 or Chapter 13 bankruptcy your credit actually improves. Your creditors can no longer pursue you. A large part of your debt will most likely be discharged. In a Chapter 13 bankruptcy, you will have time to work toward repaying your debt (usually just secured debt like mortgage arrears or a car payment). If you file Chapter 7, you will be ineligible to file another Chapter 7 for eight years. These facts mean that you become less of a loan default risk than you were before your bankruptcy filing.
Generally, the more time that has elapsed since your bankruptcy discharge and the faster you establish a positive payment history, the quicker your credit score will improve.
Questions about rebuilding your credit? Call the bankruptcy attorneys at King and King for a free consultation. From establishing credit to obtaining a home loan after bankruptcy, they can answer your questions. Call us at 404-524-6400 or visit www.kingandkingattorneys.com