Getting Credit After Bankruptcy

With the economic recession now going on its third year, it’s no surprise that 2010 saw another record year of those filing bankruptcy. With a large number of people filing bankruptcy these days, there’s a lot of questions on what’s life like after bankruptcy? Creditors want debtors to believe that if they file for bankruptcy, they will never be able to get a loan again. That’s why a common question that a bankruptcy attorney will hear is, Even though it seems like the world is coming to an end when you’re filing for bankruptcy, shortly after the discharge things start to look up a little bit. There are many creditors that prey on individuals after a bankruptcy filing. This is the time that the debtor needs to be very careful. For one, if the debtor gets in trouble again they can’t file bankruptcy again, so they will be stuck at the mercy of the creditor. Some of these predatory creditors see this as opportunity as many debtors exiting bankruptcy are debt-free. Some individuals after filing bankruptcy will actually see their credit scores increase because their debt ratios are so good.

Usually, the first bombardment of credit offers after bankruptcy, are those of secured credit cards. A secured credit card is nothing more than basically a debit card with the only difference is you have to pay it back. So basically, you are borrowing your own money and paying yourself back. Another way to get credit easily it is to buy an automobile. If the debtor can come up with a substantial down payment, some automobile companies will take a risk because the loan is secured by the vehicle. Remember, this is the time that the debtor should be very careful getting into debt again. Sometimes, the debtor is excited to qualify for some kind of loan. This sets the debtor up for failure because they didn’t carefully read the fine print and question the interest rates. The last thing an individual’s needs after filing bankruptcy is to get stuck paying an inflated price for a car with inflated interest rates. Don’t fret though, there are honest lenders out there that will be willing to take a risk on a good hard working individual that just got caught in a bad financial situation. Everyone deserves a second chance.

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