Credit Repair After Bankruptcy

Obtaining future credit should be a big concern for individuals who are filing bankruptcy or who have filed bankruptcy. Although credit markets are tight we still live in a world of credit and credit is required to rent a car, flights, hotel rooms… Credit is also linked to insurance rates and the ability to buy cars and houses. Many potential filers think that bankruptcy will permanently rune their credit score. Bankruptcy will not permanently rune your credit score.
Here is a CNN.com segment regarding repair of credit after bankruptcy:

How to Bounce Back After Bankruptcy

Take a individual who has $30,000 in debt and earns $40,000 per year in income. To a creditor the income to debt ratio looks bad and the individual is likely not going to qualify for credit. Take the same individual who has filed bankruptcy, now the debt is $0 and the income is $40,000 per year. The income to debt ratio is good. Beyond the income to debt ratio a creditor will also know that the individual will not be able to file chapter 7 for eight years after a previous filing, so the creditor know that they stand a good chance in being repaid.

I have asked clients to call me to report what their score is after 6 months to a year after filing. All of the calls I have received the scores have gone up.