Usually, when you file for a personal bankruptcy, whether it is a Chapter 7 or a Chapter 13, even if you make all of your mortgage payments on time, your credit report may not reflect this.

Generally speaking, once you go into a bankruptcy, the mortgage history no longer reports accurately to the credit bureaus. It usually looks as if the payments were not made on time, even if they have been.

One way to rectify this for purposes of obtaining a mortgage is to get a VOM from the current lender, which is a Verification Of Mortgage, or payment history. Therefore, for mortgage underwriting purposes, your actual mortgage history will be used, not the inaccurate one reporting on the credit.

The other problem is that since the mortgage is no longer reporting correctly, your credit score is being negatively affected, even if your payments are now all current.

One of the best ways to rectify this is by refinancing the current mortgage and beginning fresh with a new lender. This allows the old, negative mortgage history to slowly slide to the back of the credit report, losing significance over time, and ultimately falling off the report altogether.

There are many credit card companies that offer second chance credit cards. The credit cards are unsecured, but have a very small credit limit. Usually they charge a high interest rate and large annual fees. These cards will help to rebuild your credit over time. Keep a small balance and make sure to make your payments on time. The only true secret to better credit is time. The more time that passes from the discharge date of your bankruptcy, the higher your score will go.

The most important payment to make each month is your mortgage payment. If you have been released from a Chapter 13 bankruptcy, never miss a mortgage payment, as your lender will be able to foreclose on your property much more easily if you make late payments after the bankruptcy, and your refinance options will become extremely limited.