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How do you get a fresh start with a damaged credit score?

When many of our Escondido readers consider filing for bankruptcy, one of the primary factors to be brought up is probably this: How will I be able to get by with a bad credit report? It is true that a personal bankruptcy - a Chapter 7 bankruptcy in particular - can stay on a credit report for years, and in many ways this can restrict options for financing in the future. However, once the bankruptcy process is complete and an individual or family is ready to head toward that fresh start financially, a recent article suggested a few tips which might help raise a credit score faster.

One tip - perhaps the most obvious - is to make sure you have a job. But, as was pointed out in the recent article, some employers will run credit checks on potential employees before making a job offer. Should this scare off someone from trying to improve their employment situation? The article suggests the answer is no - being honest and up-front with the employer about past financial struggles and mistakes made might be the best way to handle this type of predicament, and may actually increase the chances of landing the job because of the honest approach.

What are some other ways to move forward and repair a damaged credit score? Well, making a conscious effort to do just that is a good starting point. If you haven't even seen your credit report, the article suggests ordering it and going over it with a fine-tooth comb. There may be errors that need to be corrected, or simply talking with creditors could lead to a creative solution.

There will always be questions that need to be answered both before and after a bankruptcy filing. Knowing all of the options - and getting your questions answered - can help an individual or family decide whether a personal bankruptcy filing is the best option for them.

Source: MoneyTalksNews, "5 Tips to Live With Bad Credit -- and Make It Better," Angela Colley, March 6, 2013

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