How do you fix your credit after a bankruptcy?

[morganist]

Quote from tradestrong:

No you don't. After 10 years you are not required to tell them of a bankruptcy. It completely disappears from your credit report. I know this because I did a bankruptcy as a stupid 20 year old that racked up about 20 grand in credit cards and a vehicle I couldn't afford.

My credit score is now virtually perfect at a score of 780 about 11 years later. The key is to declare bankruptcy as quick as you can and to get a credit card as quick as you can. In fact, I kept one credit card "to the side" and didn't report it during the bankruptcy. I then used it after the bankruptcy and kept a very small balance on it and paid it every single month. I haven't missed, or been late a single payment in 11 years either. that's the other key. At all costs do NOT EVER pay a payment late and always pay slightly more than the minimum.

Another thing, it takes about 3 years before the bankruptcy stops having a major affect. After that, you can get your score into the high 600's/low 700's. The big kick in score doesn't come until literally the 10th year when it falls off. My score jumped 50 points when it fell off.

Also...don't apply for credit frequently. Space them out really far...like once a year if at all possible. The key is to pay on time, not look desperate by inquiring about a lot of credit, and keep your balances low (but always have a balance) on your credit cards, and finally, always pay more thean the minimum.

not disclosing all debts when bankrupt is dangerous. also the court will keep records for 20 years although people might not find out there is a way they can until that expiry it is their choice to pursue it there is still evidence.

 

[MattF]

They don't check anymore..the process is basically rubber-stamped and if that other account was always paid on time to begin with, then it likely won't get noticed until well after the fact.

7-10 years a bankruptcy stays on the record.

After discharge, get a secured card asap and start making payments regularly; shoot for a limit of around $500 to look good (since it acts a little like a debit card with the $$ already on it to start).

Sign up for Stephen Snyder's Life After Bankruptcy newsletter...I get it even though I never filed bk; had thoughts, but it was all CC debt as aforementioned and the amounts weren't overly drastic to do so. Since I'm such a low risk based on current numbers, collectors just ring you up once in a while as it's all they can do since you really can't pay...by the time this whole mess even starts to work itself out, I'll have taken up settlement offers, get them reported right, then ultimately clean things up enough to have at the bare least a 650 if not higher...perfect, no, but would qualify for things at your smaller banks and credit unions.

But the newsletter is excellent. This guy cranked out a great score 9 months after his discharge some years ago...one could do it if they did the same thing; more relaxed it's 1-2 years after discharge. Even though the bk's on the report, you've shown a fast and solid recovery.

https://www.lifeafterbankruptcy.com/newsubscribe.html

 

[clacy]

Hang in there. The US is actually pretty forgiving of BK, which is a good thing for encouraging entrepreneurship, IMO.

Quick story of my father.....

1981- Secured financing for a small business.
1984- Filed for BK after he lost his biz.
1993- Secured financing for another small business.
1995- Biz failed, but he was able to maintain solid credit and did not file BK.
2006- Started a small business that has become very successful and employs around 100 people. He's doing very well financially.

My point is if you're resilient, you can overcome a BK and obtain financing for homes, business, etc in the future.

Also, you'd be surprised how many successful business owners have BK'ed and come back from the (credit) dead.

 

[peilthetraveler]

Quote from tradestrong:

No you don't. After 10 years you are not required to tell them of a bankruptcy. It completely disappears from your credit report. I know this because I did a bankruptcy as a stupid 20 year old that racked up about 20 grand in credit cards and a vehicle I couldn't afford.

My credit score is now virtually perfect at a score of 780 about 11 years later. The key is to declare bankruptcy as quick as you can and to get a credit card as quick as you can. In fact, I kept one credit card "to the side" and didn't report it during the bankruptcy. I then used it after the bankruptcy and kept a very small balance on it and paid it every single month. I haven't missed, or been late a single payment in 11 years either. that's the other key. At all costs do NOT EVER pay a payment late and always pay slightly more than the minimum.

Another thing, it takes about 3 years before the bankruptcy stops having a major affect. After that, you can get your score into the high 600's/low 700's. The big kick in score doesn't come until literally the 10th year when it falls off. My score jumped 50 points when it fell off.

Also...don't apply for credit frequently. Space them out really far...like once a year if at all possible. The key is to pay on time, not look desperate by inquiring about a lot of credit, and keep your balances low (but always have a balance) on your credit cards, and finally, always pay more thean the minimum.

I was about the same age when i declared BK, only my debt was a little over 40k (at that time the highest paying job i ever had was about 6 dollars per hour) so paying off 40k was a little hard. Took 10 years for it to go off my credit card. I also had a credit card on the side that i didnt do the BK on, but they canceled it anyway when they found out i declared BK. Its kind of hit or miss with that I guess. After you declare BK, if you have alot of accounts, you will get letters from lawyers trying to scare you into agreeing to pay your debt by signing a peice of paper. I also had about a 50 point jump in my credit score when the bk came off.

There is one funny thing I did though when i declared Bankruptcy. I paid for it on my credit card.

 

[TraderTactics]

Quote from morganist:

there is not much you can really do. the bankruptcy will always be on your record. the best thing you can do is not be in a position to borrow.

I am not asking to remove the BK record on my file, I was just asking if there are ways that can be done to fix a credit score after BK.

There's nothing I can really do? Don't we get some second chances or anything?