Although filing for bankruptcy protection does have a chilling effect on your credit report, this article seems to propose that your credit score could get better after filing bankruptcy. I consistently impress upon future bankruptcy clients that the ability to get credit is subjective in that if you are able to get credit after filing it would be at the sole discretion of the creditor. Kevin Chern a bankruptcy lawyer and president of Total Attorneys, a legal support firm states that following a bankruptcy, a debtor may have the ability to rebuild their credit within 18 to 24 months. I'm not quite sure I agree with that considering the credit card companies are now making it more difficult to get credit for people with good credit. In the end you will never know if you will be able to get credit until you try. There are no guarantees in the credit world now. See below:
"Creditors and banks try to create a lot of misconceptions to scare people away from filing and tell them their credit will be ruined forever. But you have to take a more pragmatic view," he said.
By the time most people file for bankruptcy, their credit is already trashed, they have a high debt-to-income ratio - a key indicator lenders look at - and they've likely defaulted on more than a few accounts.
"After bankruptcy, you have a significantly better debt-to-income ratio and no outstanding debt. You may actually look like a better risk," Chern said.
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