After bankruptcy, how long does it take to rebuild credit? Most people don’t know the answer to that question, but Credit-yogi.com may be able to help. This reputable website has done some research about the time required to rebuild one’s credit after bankruptcy and how to go about it.

Pittsfield, MA -- (SBWire) -- 02/21/2013 --Here are some suggestions:

- Chapter 7 Bankruptcy
- Chapter 13 Bankruptcy
- Debt Repayment
- Pay Monthly Bills

Chapter 7 Liquidation

Addressing “after bankruptcy, how long to rebuild credit?” it depends on which type was filed. If it was Chapter 7, it’s quite likely that new rebuilding credit can be done relatively soon. Chapter 7 is a liquidation bankruptcy, so it drastically reduces one’s debt-to-income ratio. Filing this type of bankruptcy also makes one ineligible for filing it again for 8 years. A person may be able to start rebuilding his credit as soon as 2-3 years after the bankruptcy is discharged.

Chapter 13 Payment Plan

Unlike Chapter 7, Chapter 13 bankruptcy is not a liquidation of one’s debt, it is a repayment plan. That is why the answer to “after bankruptcy, how much time does it take to rebuild credit?” is much more than 2-3years. When someone files Chapter 13 bankruptcy, he agrees to a debt repayment plan that can last from 3-5 years. This kind of bankruptcy does lower one’s debt-to-income ratio, but not as rapidly as Chapter 7 does. It could take 3-5 years to rebuild credit after Chapter 13 bankruptcy.

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Eradicate Leftover Debt

Chapter 7 does not eliminate all of one’s debts. However, one of the best answers to “after bankruptcy, how long does it take to rebuild credit?” is as soon as one gets one’s debts under control. The more debt a person pays off, the better his credit score will be. This makes banks want to take a chance on the individual. Depending on one’s amount of debt, it can take anywhere from a few months to several years to rebuild credit.

Paying Regular Bills

Paying the monthly bills in full and on time after filing bankruptcy can go a long way to answering “after bankruptcy, how many months does it take to rebuild credit?” As lenders see the effort a person is making to maintain control of the monthly expense payments, they will start to consider providing new credit to him, giving him an opportunity to rebuild his credit. It could take from just a few months to almost a year for bankers to see that one can be fiscally responsible.

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