Our Chapter 7 Bankruptcy Was Recently Discharged. Can We Buy a House and Have Good Credit Again?

“Dear Steve,

I am recently discharged from Chapter 7 bankruptcy. My car broke down right after and we surrendered the other car which led to us being without a vehicle to get to work, school, doc appointments and so forth.

We didn’t want to get in debt again so soon but had no choice but to get another car. So we opted to going to a preowned dealership and got a loan on a car for 4 1/2 years.

My question is an installment loan enough to rebuild our credit after bankruptcy? Should we still get a secured credit card to help? We are in hopes to apply for a home loan in 2 or 3 years and want to take credit building very slowly and carefully to make sure we have a solid chance of qualifying in a few years.


Dear D,

Well first, congratulations on getting your fresh start and new beginning.

Achieving your goals is going to be easier than you anticipate.

Now, remember that debt is only bad and to be avoided when it far exceeds your resources and ability to pay. Debt is nothing more than future obligations and life is filled with all sorts of those that are technically debt.

The installment loan may or may not help rebuild some credit but the key is if it reports to all three credit bureaus. If it doesn’t then in the eye of your credit score it doesn’t exist.

I have two excellent guides for you to read that are right on target and will help you immensely.

Please read:

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Steve Rhode
Follow Me
See also  All About Chapter 7 Bankruptcy Rules

Leave a Comment