This is simply false. You will have to work to reestablish your credit Many banks now offer credit on a secured basis to potentially risky customers. The debtor would deposit a small amount of money so as to secure payment in the future. Once the debtor proves his ability to pay, credit limits get higher. If you keep your job, save money, pay your bills on time, your credit scores will improve, and the terms you can get will get better. As little as two - three years after a chapter 7 bankruptcy, a debtor may be eligible for mortgage loans on terms equal to someone who has not gone through bankruptcy.