With the sinking economy and increasing job losses, this year looks to be another record breaker in bankruptcy filings. According to the U.S. Court system, there were about 13% more filings in 2007 and the percentages have only gotten more dismal. If you happen to find yourself among the numerous Americans that need to file bankruptcy in order to get out from under enormous debt, it will not be as detrimental as you may think.
Sometimes it becomes necessary to file bankruptcy and it really isn't the worst thing to happen to an individual. It may be the only way out of a bad situation for some people. However, you should be aware of the fact that your credit will be affected. After a bankruptcy, credit report scores will be a bit lower and credit will be a little more difficult to obtain. Your credit report will continue to reflect negative items for up to ten years. Even though some of the items were included in your bankruptcy, credit report listings will reflect the accounts that have been taken care of in the filing. Credit card issuers will take this into consideration when making a credit decision. It is still not the end of your financial future though because there are avenues available to people that have had to file bankruptcy.
Rebuilding your credit standing after a bankruptcy takes diligent effort and can be achieved. It will not happen over night though, but it definitely will be well worth your time in the long run. There are many credit card issuers that will extend credit to consumers after bankruptcy filing, however, they may not all have honorable motives. In fact, many credit card offers will cost an extensive amount more for those bankruptcy filers than someone without a bankruptcy credit report.
Although you cannot immediately repair the bankruptcy credit report, you can do many things to improve your credit situation. Secured credit cards are an excellent option for repairing your credit situation because they are sort of like a debit card and are funded by your own money. Some are better than others, so do your research and make wise decisions.