After filing bankruptcy it will take some effort to reestablish your credit but it can be done.  Although bankruptcy debtors may have inappropriately used credit in the past it is a necessary evil for the future.  The following is a list of some suggestions as to how to begin reestablishing credit after bankruptcy. 

1. Make decisions about how you handle your finances in the future.  Ultimately, the amount of money a person can spend every month is limited by the amount of income they have generated. Prepare a monthly budget.  Study it carefully and make an attempt to separate those monthly expenses that are essential from those which are simply desirable. Pare down your expenses. Try to live below your means. For a list of Twenty Possible Ideas for Cutting Monthly Living Expenses click here.

2. Obtain one or two mainstream credit cards.  Do not use high interest companies, personal property loan companies or rent-to-own companies. Use the account responsibly as a matter of convenience.  Do not use the account to acquire things you cannot afford to pay for at the end of the month. Do not let your account balance grow and make only minimum monthly payments. 

3. Pay all of your bills early, or on time, on a regular basis.

4. Pay yourself first.  With every paycheck set aside 5-10 percent of your income for savings.  Deposit these monies into a savings account, separate from your checking account, and do not spend them except in the event of a  true emergency. Christmas presents are not a true emergency!  Open an IRA account too and deposit money into it on a regular basis if you can. If you have to reduce your budget in order to be able to save - do it!

5. A few months after you receive your bankruptcy discharge order obtain a copy of your credit report.  Look it over carefully.  If there are errors bring them to the attention of the credit reporting service and have them corrected. For information on obtaining a free credit report click here.

6. Make sure that you are good at managing your checkbook.  Make sure all deposits and all checks are entered into the check register.  Do the math to keep a running balance.  Review your monthly bank statements carefully.  Make sure you have a good sense for how much money you have in your account at all times.

7. Keep a positive outlook.  On the road to rebuilding your credit you will run into difficulties and set backs.  Do not let them discourage you. Do not take No for an answer. You are not the same person you were when you filed your bankruptcy. Point to your new history of regular monthly payments and your ability to budget and to save. Keep moving forward.

8. Check you credit score annually to see how you are doing