Once you make the decision to file for bankruptcy as a way to climb out of a substantial amount of debt, you face certain negative consequences. There is no question that bankruptcy can have a negative effect on your credit score, which can make it difficult for you to apply for loans, purchase a home and obtain school funding. After your bankruptcy has been discharged, however, you can immediately begin to rebuild your credit and get back on the road to a positive credit score.
During the credit counseling course that you took as a requirement to filing for bankruptcy, you may have learned skills that will enable you to create a budget. Living within your means is not only important to avoid accumulating more debt, but it will help you improve your credit score as well.
Furthermore, you may want to apply for a credit card designed for people who have credit issues. Although these credit cards may come with higher percentage rates and possible annual fees, they can help you add points to your credit if you are careful to pay off the balance of the card every month. Make sure the credit limit on the card stays relatively low in order to avoid gathering more debt.
You may want to consider purchasing a car with the help of a credit assistance program. Making regular payments on your loan will show creditors that you are able to repay debt and it will increase your credit score over time.
This information is intended to educate and should not be taken as legal advice.