The number of people filing for bankruptcy is up 40% over last year. 

One of the fears most people have about filing for bankrupcty is the impact it will have on their credit score.  People worry that bankruptcy will be the end of their credit life.  But it doesn't have to be.

You can recover if you get back on a firm credit track, and by that we mean paying your bills within six to 12 months and making sure the creditors report it to the credit agency. You may also have to hound the credit-reporting agencies to make sure your positive strides are noted on your credit report.

Dolan Smart Money Move: You can begin to restore your credit by getting a secured credit card.  To get a secured credit card, you must first put up the cash before you can use the card. So if you put $1,000 into your account, your credit limit for is $1,000. As with all cards, shop around because the fees involved will vary.

There is another option..a number of issuers are now offering non-secured cards that cater to people who are trying to establish or restore credit. But please be careful with these offers.

Be aware that these cards will NOT give you the best interest rates. Most will charge from around 15% to 25%. Many also come with annual fees, which often range from $15 to $50, and your credit line may start as low as $500. The credit companies have begun to smell a growing market in people without sterling credit (don't get us started on that one!), so you might even find your mailbox flooded with offers.

We recommend the secured credit card route if at all possible. But no matter which one you choose, say it with us now, PAY YOUR BILLS ON TIME! It will take hard work, but you can recover from bankruptcy.

We hope this article was helpful. Read on for more help with bankruptcy and debt management.