It is a common misconception that a credit score is forever ruined by filing bankruptcy. This is not only false, but also misleading. Depending on the status of credit when a bankruptcy is filed, it could actually help your score. Rather than collections being sold from one creditor to another for years to come, the slate is wiped clean and the debtor is given a fresh start. While this does not mean a score is reset to zero, it does mean that it can likely be increased quicker.
Once a Chapter 7 bankruptcy filer receives his or her discharge from the court, it is time to begin the rebuild. There are a few ways in which this can be done. The single, most important thing to remember is that no matter what type of credit line is obtained, payments should always be made on time. Timely payments are what will prove your creditworthiness as you rebuild.
Some options to consider are secured credit cards, or secured loans. These require the debtor to put a sum of money up-front in an account to be held in case payments are not made. As long as payments are made on time, the money will remain in the account. Another consideration would be to ask someone you know who has good credit and pays their bills on time to add you to a credit account as an authorized user. This means that account will also report to your credit file, and thereby increase your score.
While it will still take some time, it is possible to have great credit after filing bankruptcy. Though the bankruptcy itself will remain on a credit report for 10 years, its effect decreases over time. In addition, once a Chapter 7 discharge is received, creditors know that they do not have to worry about you filing bankruptcy for at least another eight years. This makes them more likely to take a chance on offering you credit. Do the work, be responsible in financial decisions, and eventually it will be as if your bankruptcy never happened.