When you file for bankruptcy, it will remain on your credit report for seven to 10 years.
While filing for bankruptcy does damage your credit, there are ways to rebuild after bankruptcy.
Get a secured credit card
With a history of bankruptcy, you become a risk to credit card companies. They do not want to issue a line of credit to people with poor credit scores or a history of non-payment. A secured credit card is an option because it requires a cash deposit from you. Your borrow limit is typically the amount you deposited. This is less risky for the credit company because if you do not pay, they keep your deposit.
Make consistent payments
To help improve your credit score, show that you are a responsible borrower by consistently making payments on time. In addition to making consistent payments for any credit cards or loans you have, also make consistent payments to utility companies.
Rehab your finances
As debts get discharged or paid off during bankruptcy, you get an opportunity to start over financially. Start a savings account and build an emergency fund by depositing a portion of each paycheck. Having this money set aside can help you avoid falling back into debt. Creating and sticking to a budget can help prevent future debt as well.
As you rebuild your credit, be sure to check your credit score monthly. By doing so, you can verify that the debts discharged by bankruptcy get removed accurately. Regularly monitoring your score will also help you catch anything like fraud or identity theft that could negatively affect your score.