Category Archives: After Filing Bankruptcy

How to Rebuild Credit Post Bankruptcy

 

Most of you might think that people who file for bankruptcy protection should not be concerned with rebuilding credit, but you would be making the wrong assumption if you think such. In our American society today, we use credit for many of our daily operations in life, and unless we are loaded with cash, credit is very important to every American. So, how do you rebuild credit post bankruptcy? Continue reading

Some Misconceptions in Buying Back Your Assets in a Bankruptcy

Some of you have non-exempt assets that may have to be liquidated if you file a bankruptcy. The good news is that in some cases you might have the opportunity of buying back your assets. What should you know about buying back your assets in a bankruptcy? Continue reading

Filing for Bankruptcy Protection is Not the End of the World

Seal of the United States bankruptcy court. Ch...

Seal of the United States bankruptcy court. Church of Scientology attorney Steven Hayes bought rights to the Cult Awareness Network assets during its bankruptcy proceedings. (Photo credit: Wikipedia)

One bankruptcy filer recently posted her testimony on a bankruptcy forum website that filing for bankruptcy protection was not the end of the world. Continue reading

Financial Security- 5 steps away

Financial Security? It may not be here yet.

Although Ben Bernanke and Company thinks America is rebounding, the Great Recession is a thing of the past and we now have financial security, most of us don’t feel like the economy is recovering. We are working harder and making do with much less. Americans also do not expect their financial situation to improve. Most of us have less equity in our home, our stock portfolios are down, we are suffering from job loss and consumer goods are more expensive than ever.

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Bankruptcy – Five steps to buying a home

A credit card, the biggest beneficiary of the ...

The National Association of Home Builders/First American Improving Markets Index (IMI) has determined that the number of metro areas which have improved has reached eighty-four. The indexes which they used included employment growth information from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. Continue reading

Beware of New Credit Card Offers After Filing Bankruptcy

A credit card, the biggest beneficiary of the ...

A credit card, the biggest beneficiary of the Marquette Bank decision (Photo credit: Wikipedia)

Believe it or not, debtors who have filed for bankruptcy protection are much more likely to get credit card offers immediately after the discharge of their bankruptcy than people who just have bad credit. Nevertheless, you might want to beware of new credit card offers after filing bankruptcy.

Because credit has become such a part of our society in renting, getting utilities, traveling, and for a variety of other necessities, it is important to have decent credit. Unfortunately, for people who have been down on their luck and failed in the credit part of their finances, they often struggle with what most of society takes for granted. So, it is not unusual to get questions about building your credit after a debtor has had to file for bankruptcy protection.

One of the best and fastest ways to build credit is through getting a credit card. Getting a credit card is much easier than most might think after filing for bankruptcy.

One such debtor blogging on a bankruptcy forum website recently posted these observations and questions about getting an unexpected credit card offer in the mail: “Just wanted to say how crazy is it that since we filed 6/27, we have started to receive car financing offers & credit card offers. I realize they know we cannot file for 8 years – but still how crazy is this??? I didn’t expect any (not that we want any) until we were discharged.”

Here are two facts you may want to consider before accepting a new credit card that are associated with the reasons credit card companies are willing to extend you credit after you have filed for bankruptcy protection:

  • Creditors know bankruptcy and credit reporting laws just like anyone else. It is true that you cannot file a Chapter 7 for eight years after having a Chapter 7 discharge. You can file a Chapter 13 bankruptcy in four years after the discharge of a Chapter 7. A Chapter 13 gives creditors a better chance of getting repaid than a Chapter 7. Four to eight years is a long time for collection agencies to chase your assets, hound you for payments, and sue you for judgments.

  • Most of the credit card offers you can get after filing bankruptcy come with very high interest rates, annual fees, monthly maintenance fees, lower limits, and short payment periods. With interest in excess of 25%, it doesn’t take too many minimum payments before the cost of the extended credit kicks into high gear. You may end up paying not only the interest and principal, but you may end up paying penalties, fees, and legal costs for collections.

You will need to start rebuilding your credit as soon as possible, but you really need to beware of new credit card offers after filing bankruptcy. If you did not have the discipline to handle extended credit from credit card usage the first time around, have you learned enough about yourself and the discipline it will require to make these kind of high risk payments on time every time?

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