A very common concern of people thinking about bankruptcy is their credit.
Credit reporting companies have to report facts, whether good or bad. This information is provided by creditors. Sometimes the creditors don’t make accurate reports. When someone views their credit report and sees incorrect information they have the right to conduct an inquiry to force creditors to verify their submissions.

Negative credit history is typically a result of being over extended for too long. This history will be on a credit report for at least 7 years. If it’s already there, it will stick around for a while. Bankruptcy creates the opportunity for someone to build credit, if otherwise unable to do so.

The major factors contributing to credit scores are;

• Payment History
• Amounts owed
• Length of credit history
• New credit
• Types of credit used

Here are some steps to getting credit back on track after bankruptcy:

• Checking a credit report a couple months after filing a bankruptcy should be done to make sure discharged creditor's don’t appear as still being owed money.
• Get a single credit card, use it sparingly and pay it off every month. Many financial institutions now offer secured credit cards for people trying to rebuild credit. Keeping these cards current and paying them down will create positive credit marks.
• Find a “bankruptcy friendly lender” these are creditors who don’t hide the fact that they are willing to give people credit soon after filing bankruptcy.

High debt and low income equals bad credit. Bankruptcy is a negative mark on a credit report but presumably was used because it was necessary. When a bankruptcy appears on a credit report it doesn’t mean credit is unattainable for ten years. It does mean that credit needs to be reestablished. With a bankruptcy on a credit report, above average credit is not available, but you don’t have to have bad credit either. After placing positive marks on a credit report, along with the negative bankruptcy, middle-of-the-road credit can be achieved. Financing a car right after a bankruptcy discharge is very common. Building enough credit for at least three years could put someone in position to take out a home loan.