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How Long Does It Take to Recover From Bankruptcy?

A notation that you filed for bankruptcy will remain on your credit report for seven to ten years, depending on the chapter you file.  The most obvious ramification of filing bankruptcy is the difficulty you may have obtaining new credit with affordable repayment terms.  Fortunately, you don’t have to wait seven to ten years to reestablish a strong financial foundation.  After filing bankruptcy, consumers should adhere to this bankruptcy advice:

  • Take some time.  While it may be tempting to obtain new credit quickly, be sure to carefully consider your options. Avoid short-term, high interest loans if at all possible.
  • Maintain or obtain adequate insurance.  In addition to required insurances, such as auto coverage and homeowners insurance, health insurance is a must.  In fact, research has shown that a large percentage of bankruptcy filers state medical expenses as the cause of their financial problems.
  • Establish a savings cushion.  Three to six months’ living expenses in an accessible savings account may make the difference between a minor financial setback and a serious financial problem.  
  • Improve creditworthiness.  One safe way for consumers to reestablish good credit is to get a secured credit card.  With a secured card, consumers make a deposit into a savings account with a bank to secure a line of credit.  The credit card company then issues a card and a line of credit for at least the amount of the deposit. 

For more information, on how to recover from bankruptcy, consumers can visit

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