10 Ways to bounce back after bankruptcy

If you've been through bankruptcy, you probably think your credit is as shattered as Humpty Dumpty's shell. It may be, but the difference is you can put it together again.

Credit after bankruptcy is difficult to obtain. You will likely end up paying higher interest rates when you can find it, and you could be targeted by unscrupulous lenders who believe that desperation makes you an easy target.

Despite the difficulties, there are some simple things you can do to start re-establishing your good credit.

"Regardless of your situation, your goal after filing bankruptcy should be to straighten things out and start establishing good credit," says Mark Oleson, director of the Iowa State University Financial Counseling Clinic.

Here's how:

1. Make a budget. "Compare your monthly expenses against your income and set priorities for spending and saving," says Lydia Sermons-Ward, senior vice president of marketing and communications for the National Foundation for Credit Counseling Inc. "It's always better to control your money rather than letting it control you."

2. Learn to love cash.One of the benefits of bankruptcy: Many people who've been through it develop a "depression-era mind-set," says Chris Farrell, host of the nationally syndicated television show "Right on the Money!" and author of "Right on the Money: Taking Control of Your Personal Finances." "And that's not a bad thing." The result: You pay with cash, buy only what you need and save more.

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