Bankruptcy is a word that nobody wants to have to encounter in a personal way in their adult lives. For those people who do declare bankruptcy, they usually do it because they had run out of other options. A person's reasons for having to declare bankruptcy can vary greatly, from losing a job to having health issues to simply running up too much debt without being able to pay it down.

One of the things that a person who has declared bankruptcy naturally wonders is how much this action will have a negative effect on their future credit score. After all, your credit score is one of the most important things that determines the type of loans or credit cards for which you can qualify.

If you are interested in help with credit repair after a bankruptcy, here are 5 tips that can help you repair your credit faster:

1. A bankruptcy can remain on your FICO report for a long time:

It goes without saying that declaring bankruptcy can cause your credit score to instantly plummet. And, it can remain on your credit report for 10 years.

2. You should actually be more creditworthy after your bankruptcy than you were before:

If you think about it, you are actually MORE creditworthy after your bankruptcy discharge than you were beforehand: after all, you now have the monkey (your debt) off your back and you have more resources than you had before to pay your bills.

3. After the discharge, every debt you owe should revert to $ 0 on your credit report:

After your discharge, you have the right (guaranteed by federal law) to have the balance of each debt that has been discharged to show as $ 0 on your credit report. In fact, you have the right to dispute any cards that still show your old balances.

4. You can in some cases keep a credit card after bankruptcy:

Believe it or not, you can actually keep one or more of your old (pre-bankruptcy) credit cards after your discharge. In order to do so, you need to "reaffirm" the balance with them and enter into a new agreement. Most creditors will agree to do this since they would rather not have to incur the loss.

5. You can buy a house after bankruptcy:

You can buy a home after declaring bankruptcy. Within 1.5 to 2 years after your discharge, many people are routinely unable to qualify for a loan with the same loan terms as they would have if they had not filed. What's important at this stage is your income, your down payment, and how consistently you paid your mortgage (or rent) in the past.

Consider these 5 tips for credit repair after bankruptcy.

Source by Susan Willis