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You may have heard that bankruptcy “stays on your credit” for ten years.
That’s true, but it’s not the whole story.
The truth is that your credit score—the number that has the greatest impact on your ability to get new credit and secure favorable rates—is more influenced by recent activity.
Very soon after you’ve filed bankruptcy, you’ll begin to get credit offers.
You’ll want to exercise great caution in deciding which offers to accept, and when.
Many of the creditors who will solicit your business right after bankruptcy will attach outrageous fees and charges to these accounts—the kind of unexpected, mounting costs that will put you right back in financial trouble.
However, by judiciously accepting credit accounts you can handle and making payments that are timely and are more than the minimum required, you can begin to rebuild your credit.
Most debtors who are able to keep their bills current after bankruptcy are able to re-establish their credit in 2-4 years.
Sure, the bankruptcy will still appear on your credit report, but if your current credit is solid, that’s not likely to keep you from buying a home or a car or even obtaining some unsecured credit accounts.
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