Drug testing

Life After Bankruptcy

Bankruptcy and Credit - What Happens After Your Debts Are Discharged?

Bankruptcy will remain on your credit report for ten years. But you may be able to get credit fairly quickly - almost immediately after a bankruptcy - although you will pay dearly for it.

Due to anomalies in the credit scoring process, you're likely to have a better score than you had while you were struggling with debt. Also if you handle debt responsibly from then on, you will find your credit score will be close to prime within a few years.

Credit scoring gives more weight to more recent events. So if you use of credit is down and you're handling your debts responsibly, you score will go up. Remember you have to use credit to get a credit score.

Many lenders love to extend credit to recent bankrupts. They know you have more free cash because most of your debts were discharged. They also know you can't go bankrupt again for another seven years. So they will extend credit, usually with outrageously high interest rates.

If you managed to keep your car and/or house through the bankruptcy, your first step is to pay these bills on time.

If you have to start fresh expect to pay. A car loan may carry a 21% interest rate. Credit cards you're offered might have an interest rate around 24%. These rates will make it very difficult to stay on top your debt.

Many experts advise that if you need a new car to get it before you apply for bankruptcy and keep your payments up. You'll have a lower interest rate and will be on your way to re-establishing credit.

You might only qualify for a secured credit card at first. You will have to make a deposit of several hundred dollars with a bank, which will then grant you a line of credit in the same amount. If you handle this card correctly, the card will be converted into a regular unsecured card in a year or so. Make sure the lender is making periodic reports about your good behavior to the credit bureaus.

Don't use more than 20 ? 25% of your available credit, even if it's only $500. Pay your bills on time. If you act responsibly, in a few years you will be able to loans and mortgages at rates only slightly higher than prime borrowers get.

If you need to rent an apartment, you might have more difficulty. Landlords who check your credit report might not rent to you at all. Your auto insurance premium will likely rise and you might have difficulty getting a new job. These are some of the downsides of going bankrupt.

Everything is not all brightness and light, but the few sacrifices you will face might be worth the removal of the emotional and financial pain you are suffering every day you struggle with a load of unpayable debt.

Chris Cooper is a retired attorney who has spent several periods of his life deep in debt. At http://www.credit-yourself.com he tries to pass on some of the knowledge he picked up in his journey to become debt free.

limousine chicago service
In The News:

Tips To Take Control Of Debt Collection

Yes, debt collection tips can help. You may think you... Read More

Bad Credit Home Loan To Get You Out Of Debt

A "bad credit home loan" can help you climb your... Read More

The Five Most Popular Questions About Bankruptcy

WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law,... Read More

Debt Elimination Is The Key to Financial Freedom

If you want financial freedom, the first thing that you... Read More

Is Filing for Bankruptcy an Option for You?

Bankruptcy laws give debtors a way to resolve debt by... Read More

The Effects of Consumer Debt

Consumer Borrowing Consumer borrowing in the UK has now crashed... Read More

Personal Bankruptcy ? If Its Unavoidable, File Now

The Bankruptcy Abuse and Consumer Protection Act, signed into law... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

Bankruptcy Reform

There are some new bankruptcy laws going into effect before... Read More

Dealing with Thingitis

Debt is quickly becoming an epidemic in America. However, through... Read More

What is Bankruptcy?

Here is a useful guide to bankruptcy. It should be... Read More

Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers'... Read More

How To Get Out Of Debt

If you have found yourself in a position where you... Read More

What Are The Benefits and Consequences Of Getting Rid Of Debt The Easy Way

We have all experienced getting so far in debt we... Read More

Out of Credit Card Debt - Without Filing Bankruptcy

To be out of credit card debt is your dream... Read More

What You Should Know About Bankruptcy

Filing bankruptcy is not only a last resort legal action;... Read More

Debt Consolidation Versus Debt Negotiation

Debt consolidation versus debt negotiation are two options that are... Read More

Debt Management Systems

What is a debt management system, and when do you... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Reduce Your Debt

Do you want to reduce your debt? Having trouble paying... Read More

Is It Possible to Be Sued For My Debts?

It is possible for creditors and third-party collection agencies to... Read More

Debt: Dont Pay Your Minimum Balance

Almost all Americans carry credit card debt. Actually, over 40%... Read More

New Bankruptcy Law Makes it Harder to Stop Foreclosure

On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ?... Read More

garage lights flood light led Pete's produce ..