Is Bankruptcy the End of My Credit Life?

No! 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. Almost any bank will give you one. 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, but you need to be careful. A number of issuers are now offering non-secured cards that cater to people who are trying to establish or restore credit. Check www.bankrate.com for the most recent deals.

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. If you'd like to read more on bankruptcy and debt management, simply click here.