Can I Get Credit after Filing Personal Bankruptcy?
While creditors would like consumers to believe that they will never get credit after filing personal bankruptcy, it is usually not as far off as they would like you to believe. One question a bankruptcy attorney will hear every day is, “Can I get credit after filing personal bankruptcy?”If you ask a creditor this question they would tell you that the individual filing bankruptcy will never see credit in their lifetime. This is far from the truth. In the case of filing Chapter 7 bankruptcy, after the individual gets their bankruptcy discharge many leave the process being virtually debt-free. A Chapter 7 bankruptcy wipes out all unsecured debt including, credit cards, medical bills, payday loans and personal loans. These are the bills that the typical American gets overwhelmed with. In 2011, the average American had approximately $16,000 in credit card debt, considering the average American only makes $35,000 a year it becomes pretty obvious that this debt pattern is unsustainable.
Prior to filing personal bankruptcy, creditors threaten debtors with idle threats of how their credit will be destroyed and they will never get credit again. First of all, if an individual is in the position of filing bankruptcy their credit is already in the tank for many late pays and defaults on their current accounts. There is only one way you can go and that is up from there. Shortly after filing bankruptcy, many individuals talk about getting credit card offers in the mail. Creditors are in the business to make money and they know that after an individual files Chapter 7 bankruptcy they could emerge possibly debt-free making them a good risk to offer credit again. They also know that after filing Chapter 7 bankruptcy, the individual will not be able to file personal bankruptcy again for eight years. After the bankruptcy discharge is a period of time where the debtor should enjoy debt-free living and set a new path to financial freedom. Individuals, post bankruptcy filing should be very careful getting themselves in debt again. A lot of the offers that are received initially have high interest rates and if someone isn’t careful they can bury themselves again with not having the option of filing personal bankruptcy.
After filing bankruptcy an individual should take their time rebuilding their credit slowly by paying their bills on time and making sure that any new credit is reported properly. Taking the time to reminisce about past mistakes will help make sure they are not made again. People should take a breath, learn how to budget without a credit card and enjoy being debt-free. Everyone’s financial situation is different and should be discussed with a bankruptcy attorney to get the answers.
Getting answers to those tough bankruptcy questions needs to be thought of before you make a decision when it comes to your financial problems. Finding the answers to help you understand your situation more clearly can help you make an informed decision about filing bankruptcy. Take a minute to call or fill out the form to have a FREE NO OBLIGATION CONSULTATION with a bankruptcy attorney in your area.