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How Do You Rebuild Your Credit After Bankruptcy So You Can Get Your Finances Back Together Again?
By D Harris
There's no need to be worried about rebuilding credit after bankruptcy. In this article, I will give you some general advice about how to find your way back to the top.

What filing is all about

Bankruptcy is a legal procedure whereby a person in debt can crawl out from under it and start again. The idea behind the personal law is to help out those who are in dire financial straits, and are in debt over their heads. The result is that you do not have to pay back most of your debts. When you file bankruptcy, you are debt free and can move on. The drawback is that it leaves a nasty stain on your credit report and this will remain for the next ten years. This makes it harder but not impossible to reestablish yourself and recover.

Do I really have to wait another ten years before I can get a loan again?

No. As a matter of fact it is possible to get credit again. However, it will be a bit more difficult. One possibility is to get a protected or pre-paid credit card which can be used by depositing money into it, like a bank debit card. This can help you rebuild your credit again, and establish yourself. After a while it can help you start to get loans and credit again before the ten years is up.

What about my debts?

One of the best things about filing is that it gets rid of the creditors once and for all. You won't be bothered with them anymore. As soon as all the paperwork is in and processed, it is illegal for them to keep harassing you, which means you have the law on your side!

Will everybody know that I filed?

No. Very few will actually know about it. However,

since the file is accessible to the public it will be visible on your credit rating, and will be kept on file for ten years.

What are the changes I've been hearing about?

The original laws were passed in 1978, and were revised in 2005. The general idea of the new legislation is to make people
who CAN pay some of their debts pay. The laws were being abused by those who could have paid. Here are the major changes that went into effect last year:

-You have to meet certain requirements in order to be able to file. This means that you will be checked out and they will see if your family has an income over the state average. They also want secure that your family is able to make the regular payments.

-You must submit your last year's tax return, in addition to all the other paperwork.

-You must have lived in the state in which you file for at least two years. The reason is that some states have more or less lenient laws.

-Alimony and child support are the debts that have to be paid first.

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Donald Harris is a publisher of Information about lawyers and laws. You can go to Attorney for more.