Credit Report after a Bankruptcy

Credit Report after a Bankruptcy
Your credit report after a bankruptcy will look like a bomb
was dropped on it. Your credit score report will be
littered with all kinds of derogatory information.
Depending on what type of bankruptcy you filed will
determine how long it will take to re-establish your
credit. The two most common bankruptcies are Chapter 7 and
Chapter 13. With the new bankruptcy law, more people will
be forced to file Chapter 13. Here are the differences.

Chapter 7 bankruptcy- is considered liquidation of your
non-exempt assets. This bankruptcy is considered the
quickest and simplest of all bankruptcies. A court
appointed trustee sells off all your assets in an attempt
to pay back some of your creditors. During most Chapter 7
bankruptcies the client will not have any assets to
liquidate.

Chapter 13 - This bankruptcy is considered a wage earner
plan. This plan allows individuals whom have income to
develop a plan to pay back there creditors over a 3 to 5
year period. Under this bankruptcy you are assigned a court
appointed trustee that you make the agreed upon payments
to, which they in return pay your creditors.

Bankruptcy is all too common these days with the economy
the way it is. The mortgage crisis and the price of gas
have caused many people financial troubles all over the
United States. Luckily there is hope after a bankruptcy.
It's kind of like polishing up your shoes after you have
got some scuff marks on them. Your credit is the same way,
you can re-establish credit after a bankruptcy, and that is
the first step once you are done with your bankruptcy.

How to establish credit afterwards
The first step is to get two secured credit cards. No bank
is going to allow you to get an un-secured credit card
after a bankruptcy. All of your past credit will be on your
credit report for 7 years. If you filed chapter 7, it will
be on your credit report for 10yrs from file date. But most
of your past negative credit will be on your report for 7
yrs. The main objective is to get new credit on your report
as soon as possible. The only way to do that is with
secured credit cards, and Orchard bank is a great one. FICO
likes to see a mix of credit, so make sure you get a couple
of secured credit cards. This process will take you at
least 12 to 24 months to get your credit scores where they
are somewhat decent. After a little time with no slow pays,
your creditors will start extending credit to you again.

Don't be a repeat offender
FICO will forgive you for past bad credit mistakes, but if
you are a repeat offender it will be tough to recover. The
new FICO scoring process does not want to see you
continually having problems. So learn from past mistakes,
save your money for hard times and emergencies. Also
remember to always stay ontop of your free credit score
report

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About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.