Everybody knows that filing a bankruptcy case is a negative mark against your credit score. However, most of the people I meet with arrive in my office with high balances near the maximums, late payments, or other types of similar negative marks already. Generally speaking, most potential clients are going to need to rebuild their credit whether they file for bankruptcy or not.
After receiving your discharge, you will not be able to qualify immediately for many conventional mortgages or car loans. Buying a car is still possible, but will come with a higher interest rate – so be careful! However, conventional products can become attainable again about 2 to 3 years after your debts have been discharged. The key is to try and avoid the traps which lead to becoming burdened by debt in the first place.
One way to mend your credit after bankruptcy is to use some credit almost immediately. Almost all clients get flooded with offers from low-balance credit cards after their previous debts have been wiped away with a filing. I encourage my clients to be very careful about which offers they choose to accept. Many offers will come with activation or annual fees which lead to more debt. By carefully selecting only one or two of the best deals, clients can start to rebuild their credit wisely.