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In fact, many creditors view you as a prime customer after bankruptcy because you're getting a fresh financial start.

But don't be fooled. You still have to rebuild your credit, and it will take time, some hard work and major changes in your lifestyle to do it right.

"It's coming to terms with living within your means," said John Ventura, a Houston bankruptcy attorney and author of The Credit Repair Handbook.

"Living within your means is spending less money than you bring in and you don't obligate yourself for more than you can really afford to pay," said Mr. Ventura. "You don't carry a lot of credit; you save."

If you're coming out of bankruptcy, make it an opportunity to reinvent your financial life.

Make rebuilding your credit a priority because, like it or not, your credit history is seen by the business world as a reflection of your character.

Companies that insure cars and homes are checking your credit to see how great a risk you are and set your premiums according to that level. They argue that a poor credit record is a predictor of how many claims you will file and an indicator of personal responsibility.

Many employers – particularly those hiring for sensitive financial positions – will check your credit before hiring you.

Spend smart

After a bankruptcy, the first thing you need to do is to figure out how you got into financial trouble in the first place.

Was it simply that you didn't live within your means? Or did you lose your job or suffer a serious illness?

"It doesn't matter what the crisis is," said Todd Mark, vice president of education at Consumer Credit Counseling Service of Greater Dallas. "It was their inability to cope with the unplanned that threw them into a financial crisis."

You will have to cut your expenses, save money and spend judiciously. That may mean taking a second job for extra money to pay bills and cutting out luxuries such as cable TV.

"You've really got to be committed to the habits that will drive the result that you want," Mr. Mark said.

First, develop a spending plan to track your spending, so you know where your dollars are going. To make saving easier, sign up for automatic saving, where you have a fixed amount automatically deposited in your savings account each month.

Make sure that you pay all your bills on time, not just credit cards. Utilities, landlords and cable companies are also creditors.

Source : http://www.dallasnews.com/