When you file for bankruptcy protection, it means that your credit rating is already negative in nature. As a result, filing for bankruptcy could actually improve your credit score in certain cases. Regardless, like most other derogatory entries on your credit rating, filing for protection will remain on your credit history for seven years.
However, if you file for protection under Chapter 13 of the Bankruptcy Code and the payment plan lasts for three years, you should be clear of negative entries only four years thereafter. In the meantime, you could obtain credit in certain circumstances because of the waiting period that is required before being eligible for filing for bankruptcy again.
In terms of rebuilding your credit, you need to treat this as an opportunity for a fresh start. If you borrow money, make sure you can repay it properly, and make sure that your bills are paid on time. You’ll likely need to start small, with perhaps one credit card and build from there as you emerge from your payment plan and more money becomes available. In short, rebuilding your credit is a process, but one that’s possible because of the clean slate that bankruptcy provides for you.