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Are there credit options for individuals after bankruptcy?

Facing financial challenges and coming to the determination that bankruptcy is an appropriate option is a big step for Escondido residents who find themselves facing seemingly insurmountable debt problems. But for many people, the most daunting part of filing for bankruptcy is the prospect of rebuilding credit after the filing is complete. An Escondido resident who is about to file for bankruptcy may already have poor credit, and it may seem like there will be no chance of building up their credit score after bankruptcy. But, in reality, there are incremental steps that can be taken very soon after a bankruptcy case is over that may help rebuild credit.

In many cases, a bankruptcy filing will remain on a person's credit report for up to 10 years. The immediate impact of a bankruptcy filing on a person's credit score will vary, especially depending on what the person's credit score was before the bankruptcy filing. But, after the bankruptcy is complete, one of the first steps Escondido residents can take to begin the journey toward restoring their credit is to get a copy of their credit report and analyze it for errors.

After that, and perhaps a bit of time after the bankruptcy filing has passed, the filer could apply for a secured credit card. This is similar to a regular credit card, except that the person makes a cash deposit with the credit card company which serves as the line of credit. If the borrower can't repay the credit card balance, the deposit is forfeited.

Whether an individual's debt problems are caused by credit card debt, medical debts or any other form of outstanding loans, it is important not to look the other way while problems compound. Filing for bankruptcy may be the first step towards financial relief.

Source:, "Bankruptcy timeline: Rebuilding credit," Brigitte Yuille, Accessed April 2, 2016

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