What Is Life After Bankruptcy?

What Is Life After Bankruptcy?

Life after bankruptcy is like a cancer patient who just recovered and advised by her doctor that she can move on with her life.  She will have a new life and a fresh start.  Bankruptcy is a solution to financial problems and a way to start anew with what we have dreamt in life.  After you are discharged from bankruptcy, you feel you are relieve of heavy burden you carried for so many years.  You have passed the process and you have put the myth in the bottle.

Question:     Will I be qualified again for credit after filing bankruptcy?

Answer:          YES! Filing for bankruptcy does not mean that you will never be qualified for credit again, whether for a home, a car or consumer items. Many people are concerned that bankruptcy will cause damage to their credit permanently.  This is a myth.  Although bankruptcy will remain in your credit report for 10 years, you will be able to rebuild your credit in a matter of one to three years from the day your debts are discharged in bankruptcy.

Question:     Will I get approved for credit cards after bankruptcy?

Answer:          YES! Bankruptcy is not the end of credit.  In fact, many people who file for bankruptcy enjoy new opportunities for credit shortly after the bankruptcy is concluded.  Many of people who received discharged with either Chapter 7 or Chapter 13 bankruptcy cannot believe that they receive credit card solicitations only months after completing the bankruptcy process.

Question:     What is my next step after my bankruptcy discharge?

Answer:          Rebuilding credit after bankruptcy is something people do immediately after discharge.  Once you are discharged in bankruptcy, focus on the things you can do to actively improve your credit score. These include:


  • Get a secured credit card – This should be your first step. A secured credit card should be easy to get from a bank since it is secured for the bank. You need to deposit some amount with the bank which becomes your credit limit. Good thing about this credit card is that this will help you rebuild your credit history fast. Just make sure that an application fee is zero and the bank will send your credit history to the credit bureaus.
  • Maintain the job – It is very important to keep your job. If you don’t have one, try to get it as early as possible. The employment along with your residence history shows your creditors that you are reliable person whom they can trust and give loans.
  • Pay bills on time – Again very critical point. This becomes the building block of rebuilding your credit after bankruptcy. What utility or credit cards bills you may have, pay them off in time. Delay or missing payments of these can be problematic.
  • Start using cash instead of card – This encourage self discipline while shopping. Usually, we misuse our credit cards and buy things even if you don’t want to since we can take them on debt using our cards. If you use cash, you will tend to buy only necessary items thus increasing your savings.
  • Keep track of your credit report – As per law, you can get one free credit history report from all three credit bureaus. Keep a track of your credit. If you find any discrepancy, bring it to the bureaus as early as possible.
  • Rearrange your finances – You should have a fixed monthly budget and realign it as per your new financial status. Keep focus on savings and reduce spending wherever you can. Try to take credit after about 1 to 2 years which will help you rebuild your credit after bankruptcy.


Question:     What are the factors to consider when applying for credit cards after bankruptcy discharge?

Answer:          Here are some things to consider on how to obtain credit cards after bankruptcy discharge:


  • Accept a pre-approved credit card offer
  • Know the terms
  • Contact your bank or credit union
  • Get a secured credit card
  • Get a co-signor


At Lozano Law Offices, we help clients get the debt relief they need while building a plan for a better financial future.

Note:   This is not a legal advice.

Toll Free 1-877-4LOZANO for free consultation or Schedule an Appointment