How Do I Repair My Credit After I File For Bankruptcy?

Posted by Charles Nguyen on January 27, 2022 at 7:30 AM

shutterstock_2045599262Two common questions I get when I speak to clients are – what happens to my credit and how do I repair it after I file my bankruptcy? Bad news first, your credit will suffer negatively when you file. Now the good news, filing bankruptcy is often the fastest way to repair credit and obtain better financing.

At the end of your chapter 7 or chapter 13 bankruptcy, you’ll receive a discharge order. This basically means your liability on these debts are gone. With that, your credit report resets, which is good because any negative impacts, such as missed payments, are removed and your debt to income ratio looks better! However, on-time payments are also removed.

So how do you repair your credit after you file a bankruptcy?

  • Beware of credit repair agencies since they just want your money and if you can try these other methods (usually for free), it may make financial sense to avoid these agencies altogether.
  • Opening a secured credit card with a financial institution. These are usually tied to money you already have, so, as long as you’re making small transactions and making payments right away, your credit should slowly improve;
  • Opening an unsecured credit card with a low balance. If you’re able to obtain one, again, make small purchases every month and pay it off every month;
  • If your mortgage or car lender stops reporting your payments to the credit agencies, then you can self-report your car loan and home mortgage payments by submitting an on-time payment history to the credit bureaus; and
  • Take advantage of Lifeback Law Firm’s FREE credit repair program. There is no cost to you for 90 days after your bankruptcy is complete. With that, we offer a small course in rebuilding credit, a list of professionals and direct contact with our credit repair specialist!


So, if you’re thinking of filing for bankruptcy, and or if you have questions or are ready to get your life back, reach out to Minnesota’s nicest bankruptcy law firm by going to You won’t regret it!


Topics: Bankruptcy, Credit

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