After filing for bankruptcy, many people feel they will never be able to have credit again. This is simply not true. You can come back from bankruptcy and establish new credit, even when your bankruptcy is still listed on your record.

Why It Matters: Re-establishing credit is important to buy a house, fund unexpected expenses or send a child to college. After experiencing bankruptcy, you may feel eager to get back on track, or you may be glad to be rid of credit altogether; but, irrespective of your emotions, you can regain credit, here's how:

What You Need to Know: Loans after bankruptcy?

• Student loans that are guaranteed by the government are not based on your credit history or income. Defaulting on an existing educational loan may prevent you from obtaining a new one, but filing for bankruptcy shouldn't. In fact, the government is restricted by law from discriminating against anyone who has filed for bankruptcy.

• Home loans can be granted to you as soon as two years after you have received your discharge in bankruptcy, or even one year after filing for Chapter 13, or one year after discharge in Chapter 7, if you can show that the bankruptcy was caused by circumstances beyond your control, and are unlikely to reoccur. It may only depend on whether you have been able to re-establish good credit or prove that you can manage your finances responsibly.

What else can you do to re-establish good credit?

• Pay your bills on time. Any lender will look at your credit history as an indication of your credit future. If you paid your bills on time before the bankruptcy, they are likely to give you the benefit of the doubt that you will still maintain prompt payments.

• Your bankruptcy will allow you freedom from previous debts you could not pay. After the bankruptcy, it is important to demonstrate good credit management to show lenders that you are in control of your credit, even if you weren't before.

Steps to Take:

1. Know what's in your credit report. Any inaccuracies may hurt you when you are trying to re-establish credit.
2. Be proactive in your attempts to rebuild your credit.
3. Apply for a few secured credit cards and make sure to pay all of your bills on time.
4. Remember that the longer you demonstrate good credit habits, the better your credit rating will be, despite any previous problems.

Select a link from the list below to begin learning more about your credit.

Get a FREE Copy of Your Credit Report
It’s Never Too Late to Repair Your Credit
Inside Your Credit Report
What’s In Your FICO Score
What Is Good Credit
Establishing Good Credit
How to Improve Your FICO Score
Using Credit Cards Wisely
30 Reasons Your Credit Score Is Low
Repairing Your Own Credit
Judgment Strategies
Facts About Credit Inquiries
Your Rights Regarding Debt Collection
Divorce and Credit
Coming Back After Bankruptcy
Charge-Off Debt & the Seven Year Rule
Top Ten Do's and Don'ts During the Loan Process
Identity Theft and the FACT Act
CRC – What You Can Expect