In today’s society, many Americans avoid filing bankruptcy at all costs because of the fears of having to live without credit. The credit industry has done a good job making sure the proper propaganda is placed out in the market to educate Americans on the evils of filing bankruptcy. Most of the information is a lot of hogwash. A lot of the stories on the Internet should fall under bankruptcy myths and legends, but now are being passed around as facts.
It is true, that filing bankruptcy will put a big scarlet B on your credit report, but it doesn’t mean you will never have credit available to you ever again. For an individual that files Chapter 7 bankruptcy, it can stay on their credit report for up to 10 years and for the person filing Chapter 13 bankruptcy, up to seven years. What most people don’t consider is at the time of filing bankruptcy their credit was probably already in the tank. One of the biggest factors in a credit score is the person’s debt ratios. When a person comes the time in their life when it’s necessary to file for bankruptcy, usually their credit cards are tapped out and no new credit is available to them. At this time, they probably have a pile of late pays and some unpaid bills and this will put the final nail in their credit coffin. So when someone says that filing bankruptcy will destroy your credit, talking you destroy something that is already ruined.
So this brings the question, The answer to that is, yes. It might not be the week after the bankruptcy discharge, but within a short amount of time credit will be offered to many post bankruptcy. Creditors are opportunists and know that many individuals after filing chapter 7 bankruptcy will exit being virtually debt-free. They also know that the same group cannot file bankruptcy again for eight years. As long as the person can stay employed and has a steady income, many creditors look at this as an opportunity to make some money. There are many vultures out there after bankruptcy also and a person that just got themselves out of debt be very careful. Some of these predators prey upon individuals immediately after filing bankruptcy offering them credit at a much higher interest rate and fees. Some people will jump at the chance to get another credit card and put themselves in bondage to this predatory lender. A bankruptcy lawyer will usually tell their clients to enjoy the freedom living on what they make and rebuild their credit rating slowly. Before making any rash decisions, a person should consult their bankruptcy attorney to see what they think about the offer. After going through all the stress of being in debt and filing bankruptcy, why would someone want to put themselves back in that same situation?