Recovering from a bad credit involves finding a way of repaying your debts. You can for example liquidate some your assets to help you repay your debts. Close your credit accounts and set up and stick to a budget that will help you establish a good credit. http://www.ehow.com/how_117172_fix-credit.html has more information.
Pay everything off. Then don't open or close any cards. Closing a card you've had for a long time adversely affects your score. Finally, use one card for small purchases (cup of coffee, ect,) then PAY it off every month. That will build a repayment history.