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:

The Effects of Consumer Debt

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

Life on a Debt Management Program

Signing up for a debt management program is easy; it's... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

Reduce Your Debt

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

Debt Relief with this Simple Formula

Is there a way to get out of debt without... Read More

Craving For Financial Freedom

Have you ever felt trapped in a Rat Race and... Read More

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a... Read More

Debt Elimination Is The Key to Financial Freedom

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

Should You Join a CCCS - Consumer Credit Counseling Service for Debt Relief and Financial Freedom?

Do You Need to Join a CCCS - Consumer Credit... Read More

Worried About Debts?

Having trouble paying your bills? Getting dunning notices from creditors?... Read More

Learn The 15 Debt Elimination Steps You Must Take Immediately!

What Everybody Needs To Know...Learn The Truth About Debt Elimination... Read More

Secrets to Why Debt Reduction is So Vital for Your Financial Health

Living with debt is never a good idea if you... Read More

What is Debt Settlement?

Debt settlement is the process of negotiating with your creditors... Read More

5 Methods Toward Reducing Your Debt

Decreasing your debt is paramount to having a good credit... Read More

Debt is The Master of Souls

Wholeness requires separation. In order for you to experience yourself... Read More

Personal Bankruptcy: Last Option To Legally Stop Bill Collectors

Do you have stacks of unpaid bills?Are you in debt?Are... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

How To Avoid Medical Collections

With medical collections costing doctors millions upon millions of dollars... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... 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

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought... Read More

How to Protect Yourself: Debt Collections

So you are getting collection calls? You're desk is full... Read More

Fast Track Out of Debt

You go to the mail box and scan - a... Read More

What is Debt Settlement and How Does it Work?

Debt settlement involves negotiating with a creditor or creditors to... Read More

Yes to Less Debt

Feeling stressed by the amount of debts you have? Three... Read More

roadway cobra head led flood light bulb Pete's produce ..