GETTING CREDIT POST BANKRUPTCY

The Secret To New Credit After Bankruptcy

by Kurt O'Keefe, Attorney at Law · Posted in *Life After Bankruptcy

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It is said that filing bankruptcy ruins your credit rating.

Said by whom?

Said by lenders, of course.

I  know people can get credit again; I filed a third Chapter 7 bankruptcy for at least three individuals

That good credit rating is in the rear view mirror, or about to be, by the time you contact a lawyer.

People who can pay their bills don’t email or call me.

In the old days, people would run out of new credit cards to get cash advances to make the minimum payments on the old cards.

They might be current, the credit score is still high, but because they just got the layoff notice, they know next month, the money won’t be there to pay.

It is not bankruptcy that wrecks your credit, it is not paying your bills.

People who cannot pay their bills are the ones who file bankruptcy.

If you do not file bankruptcy, you still will not have the money to pay your bills, and will still have a bad credit score.

A good credit rating comes from paying your bills on time.  That is the only way.

Watch out for the scam companies with the magic formulas, who say they can get bankruptcy off your credit report before than the ten year period allowed by the law.

I am frequently asked, how do I get credit to re-pay timely, to restore my credit rating after bankruptcy?

How about gas, electric, phone, cable, internet bills still in your name?

Will you keep paying on a vehicle or mortgage?

Even if you did not reaffirm a debt, you have the right to include, to add, information to your credit report.

If you are renting, paying on time helps.

Yes you pay higher interest for credit after filing bankruptcy, same as you would if you had not filed and still owed all that deb.

Again, you would probably not even get a loan if you had not filed bankruptcy.

You will likely have a better credit score after discharging a bunch of debt than you did when you still owed all that money, and the creditors know you cannot get anotherChapter 7 discharge for 8 years.

You can get a high fee, high interest rate secured credit card.

Works like this:   you deposit say, $500 at the bank, and the bank gives you a credit card secured by the $500 dollars in your account, which you usually cannot touch.

I am just pointing out, one way to get credit, not recommending this method.

It takes a while, but it is done all the time, or people would not be able to file multiple bankruptcies.

Not that that is a good idea either.