How to Recover From Personal Bankruptcy

Filing personal bankruptcy stops harassing phone calls from creditors and gives you the chance to wipe out your debts and make a fresh start. While you're no longer liable for debts after a bankruptcy, this process ruins your personal credit score. A low score can stop you from getting a mortgage loan or auto loan in the future. Thus, it's smart to rebuild your credit score and recover after a personal bankruptcy.

Instructions

1

Review your credit report to make sure creditors update your file. Order your credit report from all three credit bureaus a few months after your bankruptcy discharge. Debts included in the bankruptcy should have an entry that reads, "included in bankruptcy." If you don't see this notation, contact the creditors and ask them to update your file.

2

Manage old debts. You have the option of excluding some debts from the bankruptcy process such as a home loan, vehicle loan and student loan. Recover faster from a personal bankruptcy by paying these creditors in a timely fashion--by the due date.

3

Acquire new credit and start fresh. If all debts were wiped out in the bankruptcy, apply for a new credit line and begin rebuilding your credit history. Go to a local bank or credit union and pick up an application for a secured credit card. Ask about the security deposit and other start-up fees for this type of account. Secured cards have an easy approval process and are designed for people who can't qualify for unsecured credit cards due to bad credit.

4

Keep debts to a minimum. Learn from past mistakes and avoid accumulating debt. Use credit cards to build credit, but give yourself a low monthly spending limit. Pay off your new charges at the end of each month to stay debt free.