Since a bankruptcy filing most often occurs after financial difficulties arise, in most cases an individual’s credit report has already been damaged before a filing takes place. Chances are one or more creditors have already turned in reports of delinquent accounts or judgments. However, it is possible future creditors may consider the reasons that caused you to file bankruptcy, such as loss of job, illness, unexpected expenses, divorce or a death in the family.
While the filing of a bankruptcy will not have a positive effect on your credit report, it is possible to rebuild your credit. Some practical suggestions to accomplish this are to hold a steady job, don’t move from place to place, take out a loan and repay it early, pay our bills after the bankruptcy on an ongoing basis or save some money in a bank account to show you have the responsibility to put money aside.