The explanations for a bankruptcy filing can be many - loss of job, sickness, or just a run of bad luck. U.S. law permits individuals who can provide evidence that they simply can't pay their bills the chance to have those debts wiped out in bankruptcy court. Having your obligations relieved is not necessarily easy; there is a price to be paid for getting a new start. The wiped out debts become taxable income. The filing will remain on your credit report for as long as ten years.

There are credit card companies that will extend credit to consumers who have recently emerged from a bankruptcy filing. Companies don't offer credit to the recently bankrupt out of kindness; they know that once you return from court, you can't file again for eight years. Your credit card will be more expensive than the average card, and you'll have to pay greater interest rates, but you can get a credit card after bankruptcy.

Following are some suggestions that might help you raise your credit score following a bankruptcy filing:

Get a major credit card. An account from Chase can help your score more than an account from Your neighborhood bank. The large, national banks aren't going to approve you for an account right away; you will have to start with expensive accounts from small financial institutions. When you can, you should apply for cards from larger banks, as they tend to carry more authority" with the bureaus.

Take the costly charge cards when they are offered and use them with care; you may not have any other choice. Make regular purchases and make the payment promptly. Pay your bill in full if possible, so that you don't have to pay the steep interest rates that the bank will apply to your account.

Ask for a higher limit. Your FICO score is based, to an extent, on the amount of purchasing power available to you. Credit bureaus use something known as a debt-to-credit ratio when establishing a score, measuring how much you owe when compared to how much you can potentially owe. Ideally, you want to owe as little as you can when compared to your total limit. An increase in your limit can contribute to that right away. The higher your limit, the more favorable your ratio.

It is tough recovering from personal bankruptcy, but it is possible. Reestablishing financial competence takes time and effort, but in time, you can do it.