Credit After Bankruptcy
Many people facing bankruptcy are hesitant to go through with it because they’re afraid of what life might be like after they’ve filed. They’re worried they won’t be able to get a credit card or a car loan after bankruptcy. While circumstances vary from individual to individual, bankruptcy doesn’t mean you won’t be able to get credit.
It is true that a Chapter 13 or Chapter 7 bankruptcy stays on your credit report for up to 10 years, but in most situations it won’t affect you for anywhere near that long. At TBC we’ve seen clients buy cars within days of completing a Chapter 7 bankruptcy. We’ve seen clients refinance their houses while still in Chapter 13 bankruptcy. Contact TBC today for affordable and prompt debt relief services, and let our lawyers show you your options.
What Happens After I File?
First, you will be required to attend a debtor education program before your debts can be eliminated. This course generally costs about $50. You’ll learn about how people can get into debt, how to keep from getting back into debt, and about budgeting. The course you choose must be approved by the U.S. Trustee. Your TBC attorney will help you find one that works best for your schedule.
Credit Card: Friend or Foe?
We once represented a client who had $3,000 worth of credit card debt discharged after filing a Chapter 7 bankruptcy. Shortly afterwards, our office received a pre-approved, credit card application from the same credit card company, intended for the client. One of our attorneys called the company to ask them what was up. After all, who would want to lend to someone they’d already lost thousands of dollars to? “Thanks for pointing out the mistake,” they said, “Could you please give us their current address?”
This time, we declined.
The moral is, credit card companies make more money from customers who fall into debt. This company had just lost thousands of dollars on our client, and they thought they could make some of it up by dragging them into debt once again.
Don't wait until till it may be too late to seek protection under the bankruptcy law. Schedule a FREE Consultation with one of our bankruptcy attorneys and learn how the bankruptcy law applies to your specific situation. Call TBC today at 314-961-9822.