You can restore your credit in less time then you think after filing for bankruptcy.

Bankruptcy is a stressful experience but there is most definitely life after bankruptcy. Many people bounce back after bankruptcy and, through hard work and disciplined spending, rebuild their credit. If you are methodical and careful when rebuilding your credit after bankruptcy you can restore your credit (with decent rates) and even qualify to buy a home in as little as 1 to 2 years after bankruptcy.

A bankruptcy will stay on your personal credit history for as long as 10 years. Despite this fact, you can begin to restore your credit, the very day after your bankruptcy process is over and here is how:

1) Get credit again: How is it possible to get credit again?
a. Secured Credit Cards: One way to begin to rebuild your credit after a personal bankruptcy is to get a secured credit card and to use it. A secured credit card is a credit card that is secured against funds you have in a bank or on account with the credit card company. Most major credit card companies offer some for of secured credit cards. The rates are traditionally higher and the amount of initial credit they will extend will be lower (on average $200 - $500).
b. Secured revolving lines of credit: It is time to begin to rebuild a relationship with your bank. Open an account and make sure you place regular deposits in the bank. Keep an average balance that is greater than your total debt outstanding. After a short while, if you are able to do this - you will be able to get a secured line of credit or loan from a bank. If you use it and pay it back in short order, you will be demonstrating to a bank and to the credit reporting agencies that you are a responsible borrower who repays his / her debts.

2) Clean up your credit report: Credit reporting agencies monitor everyone's credit history. After bankruptcy, your credit report will be marked. What many people don't know is that some of the information that may appear on your credit report is can be dated or even incorrect. By obtaining a copy of your personal credit report once a year, you will be able to see who appears on your credit report. It will show you what credit cards you had or have, what your payment history is. Take a close look and if anything looks incorrect, contact the credit reporting agency in writing and notify them of the discrepancy and ask that it be corrected.

3) Budget your spending. One of the best ways to make sure you don't fall back into bankruptcy or behind on your bills is to spend less than you earn. As simple a concept as this may seem the temptation to spend is everywhere. What folks do after bankruptcy is to create a budget. What a budget does is clearly outline what expenses you have and what monies are going out each month. On the flip side, it will outline how much you have coming in. At the end of the day, be sure take in more money than you send out.

Bouncing back from a personal bankruptcy can be a difficult task but thousands of people are doing it each day. With the help of bankruptcy experts, debt counselors, prudent budgeting and some fiscal discipline - you will be able to bounce back faster than you otherwise might have thought possible.

Author: Chris Kalian

About the author:
Chris Kalian is a contibuting author. His backround in business and dedication to educating individuals on areas as important and diverse as bankruptcy, health insurance, insurance & finding money for college. Some of his content can be found at http://credit-card-bankruptcy.net/wordpress

Article source: Free Bankruptcy Articles.