One misconception that many people have about bankruptcy is that going filing means that they will never be able to get credit again. Buying a house or a car, or getting a business loan will be impossible after going through bankruptcy, this theory goes.

Fortunately, this is not true. Following bankruptcy, it is possible to improve your credit and obtain the financing necessary to pursue your dreams.

Yes, your credit rating is likely substantially impaired by the time you file for bankruptcy. But credit ratings can be improved. For example, many car companies are willing to provide loans for people with imperfect credit. By making regular payments, by the time you trade in that car for your next one, you will probably be able to get a better interest rate.

Filing for Chapter 13 bankruptcy can also help. Chapter 13 involves making payments to a bankruptcy to a trustee who distributes the money to creditors. You then receive a payment report that can serve as documentation to future lenders that you can reliably make regular payments on your debt. This can help counteract older issues on your credit history.

Finally, the advice of a bankruptcy attorney can help you become a viable candidate for credit once again. For instance, Chapter 13 filers have loan programs at their disposal that can help them get a new mortgage in one year. Those who file Chapter 7 may qualify for a mortgage two years after their bankruptcy is discharged.

Bankruptcy gives people overwhelmed with debt a chance at a fresh start, without crippling them financially for the rest of their lives.