GETTING CREDIT AFTER BANKRUPTCY
Re-establishing credit after a bankruptcy is usually a lot easier than expected.
Interestingly enough, one of the first questions that people ask after they have just filed for bankruptcy is “how long does it take to get my credit back?” The question is not an easy one to answer since there are many factors that will impact on future access to credit. Nonetheless, most people who filed for bankruptcy find that credit starts to become available again within one or two years of being discharged (released from bankruptcy).
Having said that it is important to remember that rebuilding credit is a process, it doesn’t just happen like turning on a light switch. After all it took a while to get into debt before the bankruptcy, it takes time to get out of debt through the bankruptcy process and it will take time to repair creditworthiness afterwards.
There are steps that need to be taken in order to improve on a credit bureau report that has been damaged by collections problems or an insolvency proceeding. Reviewing a credit report to ensure there are no errors or omissions is a very important early step. Credit reporting agencies are required to make credit reports available to consumers at least once each year without charge although it is faster to obtain an online copy for a charge to a credit card.
CAUTION: So called “credit repair” companies can do little, if anything at all, that you cannot do for yourself without paying fees.