When you declare bankruptcy, especially after Chapter 7 bankruptcy, you gain a fresh start financially. Your dischargeable debts have been written off, the creditors have stopped calling. But now you have to learn how to deal with a damaged credit, and find ways to rebuild after bankruptcy.

While it's not impossible, rebuilding your credit has definitely gotten more difficult given the current financial downturn. Banks are less willing to lend, to all but the very best creditors. yet you can take steps now to both get your financial house i order, and start repairing your credit.

At the time you filed for personal bankruptcy, it's very likely that you already had bad credit - delinquent loans and credit card payments, a home mortgage that was past due, often medical bills as well as other debt that was more than you can handle. So, the bankruptcy itself probably has not lowered your score much more than it already was. However, your bankruptcy will remain on your report for ten years, which means that potential creditors may use it to turn you down, even after several years of good credit. Take heart though, some banks are willing to lend to you after just one or two years of good credit.

First, start paying everything you have left on time. This would include student loans, which you cannot discharge in bankruptcy, but which do show up on your credit report. If you have any other loans, like care loans, that you reaffirmed in bankruptcy, or if you kept your home in a Chapter 13 bankruptcy, you can begin immediately to make those payments on time. This helps rebuild good credit.

Next, check your credit report if you haven't already to make sure there are no errors. For example, some creditors will report your bankruptcy discharge as a "charge off" which is not correct. Make sure credit that you paid on time is correctly reported, every little bit of correct, timely credit will count right now.

Another step you can take is to get on a budget. Start learning to live within your means, and don't rely on credit so much. If you have a budget and a financial plan, you have a chance to build some wealth without owing every dime of your paycheck to credit card companies as you used to before your bankruptcy. Find ways to stash as much cash as you can into savings, including an emergency fund, so that you don't rely on credit for things like car repairs, vacations, clothing purchases and so on. Find ways to pay cash, and get used to it, all the while building savings no matter how small.

Lastly, it's important to note that getting bad credit personal loans, such as for cars, is nearly impossible now. Don't go applying everywhere in the world for credit, as those applications can bring down your score. In addition don't fall for the mailings you will get from car dealers and others seeking to give you credit after your bankruptcy. The interest rates and fees on these loans will be sky high - and you don't want to fall into the same habits that led you to file bankruptcy in the first place!

You can check with your bank to see if they will provide you a small loan, for example just $500 or $1000 for overdraft protection. Many banks do have such programs for their checking customers. They will tell you how many years you will need before qualifying for such a loan, and that can give you something to work toward.

Just keep paying your debts on time, learn to pay cash, and start to build some savings. You will qualify for decent credit in no time!