Once the bankruptcy petition has been filed, and any litigation against you has been stayed, you can breathe a sigh of relief. For the first time in a long time, you will not owe any money other than the payments under the Plan that have been approved for you by the United States Bankruptcy Court in accordance with the Bankruptcy Code. There will be no more harassing telephone calls or threatening letters from creditors or collection agencies. You will, however, be responsible for re-establishing a solid credit rating.

Many debtors are surprised, and relieved, to learn that even though your bankruptcy will appear on your credit record for some time (how long depends on whether you filed under Chapter 7 or Chapter 13) you will be able to obtain new credit and even mortgage loans! The rationale for this seems to be that, if you filed under Chapter 13, prospective creditors know that you've successfully completed a bankruptcy plan and are willing and able to repay your debts over time. If you filed under Chapter 7, your work may be a little more difficult. However, prospective creditors know that you can only file a Chapter 7 bankruptcy once every six years; therefore, any credit extended to you will be repaid.

Whether you filed under Chapter 13 or Chapter 7, prospective creditors seem to agree that you are now a better credit risk than you were prior to filing for bankruptcy, and certainly a better credit risk than a similar individual who has not filed for bankruptcy but is teetering on, or already in, serious financial trouble.

We understand that along with all of your other concerns about filing for bankruptcy, your ability to obtain credit cards and personal loans in the future is important to you. However, we think you will find that the "fresh start" bankruptcy offers lends itself to re-establishing your good credit rating and that not long after your filing, you will once again receive pre-approved credit cards and mortgage offers in your mailbox.