Establishing some sort of credit during and after filing BK

Usually lenders will not approve any credit while your BK is ongoing; that is because some people will turn around and amend their BK plan to include that debt. As an underwriter, I wouldn't approve any credit unless you specifically motioned the court to incur new debt with my company, which would prevent the debt from subsequently being added to your bankruptcy.

After your BK is discharged, it is relatively easy to start rebuilding. You'll have to start small, get 1 or 2 cards with $300 limits and just pay on them every month. Try not to go overboard and get lots of inquiries or new accounts as soon as you're out of BK, because then it looks to potential lenders like you didn't learn your lesson and rushing out to get back into debt.

i had 1 credit card from a few months ago i took out and was paying on faithfully to help me rebuild my credit, when we decided to file bk i asked my attorney if i could keep paying on it, he said its better to just let it go because as soon as they get word that i filed they will close the account anyways. he said to wait until after my bk discharges to start rebuilding my credit. he said the offers i will get after the discharge will be way better than what i have now. so it kind of makes sense. i wouldnt apply for credit while i'm still in the bk process.

I had a friend who had a credit card that he reaffirmed in his chapter 7. They agreed to let him keep the account as long as he kept paying it. As soon as the discharge was final, they closed the account for him, and he was still responsible for the balance. I would personally let everything go, and worry about the credit after the discharge.

i totally agree, wait until after the bk discharges to start rebuilding your credit.

Want to laugh? We filed BK earlier this year and on the way home from our 341 meeting-we stopped by our P.O. Box to check the mail-guess what was there? A credit card offer! Of course nothing special-actually it was one where you pay astronomical fees just to have it, but it helps rebuild your credit.

Of course I ripped it up right away. Right now, I am in no rush to get any more credit. I don't even want to re-establish credit this soon.

Before BK, I was a fanatic about keeping a high credit score and I was obsessed with my credit. Now I realize that the better your credit is, the more you can borrow, and for some people that means getting in more trouble. At least for me anyway.

That's kind of how I feel about my credit now. I was fanatical about making sure that every payment was made early. Had years of no late payments. When the economy went down and we took a major hit to my income, all of the care I put into my credit was worthless. The banks raised the interest rates, just because they could. They would not even try to work with us to be able to keep payments current. My opinon right now is, if I can't afford to pay cash for something, then I probably don't need it.

You said it exactly! That is what happened to us and that changed my whole outlook on everything-especially credit!