A friend, after claiming bankruptcy, had to have a co-signer to buy a car. A few months later he tried for a small loan and was told that he had a three gold star credit rating and could borrow up to $75,000 with no problem. (This is in Canada) What could possibly have happened to give him such an excellent credit rating?

When you do file your slate gets wiped clean and it looks like you've never been in debt so that is probably why the excellent rating.

My brother went through bankrubtcy a few years ago and started getting credit cards by the handful a few days later - at aht time it was that you can't file for bankruptcy again for 7 yrs or something so boy, howdy, you were a good credit bet.

Be aware that bankruptcy laws have changed in the US this year such that you can NOT wipe out credit card debt through that process. Don't know how Canadian laws handle that.

Oh, and your credit report does show that you have been through bankruptcy so it's not like you get a clean slate.

Please to rate usefulness of this anwer.

The new bankruptcy laws are strict but I am pretty sure in the US you can still wipe out credit card debt I have known people that have done it this year 2007

This took place in BC, Canada. After discharge your name is in the Credit Bureau for 7 years. Even after the 7 years you may have to request its removal. The person I refer to suddenly had a five star credit rating after less than a year.