Credit After Bankruptcy

We are bankruptcy attorneys located in Eastgate, Ohio helping thousands of people get a fresh financial start through bankruptcy filing for over 20 years.

One of the most common questions a debtor will ask is “Will I be able to get credit after my bankruptcy filing?” The short and quick answer is, “Yes!”

There is a large myth that your credit will be tarnished forever by a bankruptcy filing and that this filing will continue to follow you and stop you from getting credit ever again. This myth is largely created by the credit card companies, the same companies that helped lure you into credit card debt by pounding into your head that it was good to spend money and buy things you might not actually really need; they extended your credit limits; send you pre-approved credit cards; give checks for thousands of dollars to turn into cash; and draw you in with low introductory rates. And then say if you file for bankruptcy you will never be able to re-establish your credit.

The truth is the exact opposite. There are too many companies in business to make a profit. And yes, you can help them make that profit. This win-win situation is how to re-establish credit after bankruptcy.

First of all after your bankruptcy filing you will have no debt. This makes you a great prospective customer to creditors, they know that you are debt free and will have the funds available to pay their new debt. This would not be the case if you did not file for bankruptcy and had a ton of debt.

You are also now a lower risk to the creditors since you cannot immediately file for bankruptcy protection again. The lenders know this and know that if they lend to you after a bankruptcy, that you will be around for at least five to six years. This is time that they will make their profit. And again, this is what they are in business to do.

After a bankrupcy filing you will be surprised at the amount of credit card offers you will receive in the mail. Accept maybe one or two of these offers to start re-building your credit. Of course, this is only if you want to re-build your credit. If you are not in a position to pay for these debts, do not take on new debt. This is definately not in your best interest. But, some bankruptcies are filed by people who can still afford debt, but had just created too much of it.

Once you do create new debt, be sure to make your monthly payments on time every month. But, do not pay your credit cards off each month. I know this sounds just the opposite of what you would think you should do, but these credit companies are in it to make money off of you, so month one make the minimum payment and month two pay off the balance. This is a proven way to re-build your credit, this way you are giving them their reward of earning some interest off of you, and you will see your credit limit increase. Of course, you will keep your spending under control. Use the new credit card not because you have to, but because you want to. It is merely a credit re-building tool and that is it.

Keep your credit clean, do not have any accounts go to collection and make all of your payments on time. This will re-establish your credit. You will be able to buy a home in the future by following these simple rules.

Do not let the fear of not being able to get credit in the future stop you from filing for bankruptcy protection now and getting a fresh financial start.

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Call us today for your free consultation with one of our Eastgate, Ohio Bankruptcy Attorneys.

Bankruptcy Basics

We are a bankruptcy firm located in Eastgate, Ohio.

Not sure what bankruptcy is? Bankruptcy is a process in which consumers and businesses can eliminate or re-pay some or all of their debts under the federal protection of the bankruptcy stay through the bankruptcy court. Basically there are two types of bankruptcy available for the consumer; Chapter 7 bankruptcy and Chapter 13 Bankruptcy.

Chapter 7 bankruptcy is designed to clear off or discharge all of your unsecured debt. This will give you a fresh financial start. Creditors can no longer collect on debts by telephone calls or court proceedings. If there were secured items that you wish to keep such as your home or vehicle you would re-sign on these items under a reaffirmation agreement.

A reaffirmation agreement is a bankruptcy document that you would sign to reaffirm debts that you do not want to discharge through your bankruptcy. The debts that are re-signed on will report to the credit reporting agencies and help to re-build your credit.

Chapter 7 Bankruptcy is also referred to as a “liquidation bankruptcy” because the bankruptcy trustee may take and sell or liquidate some of your property to pay back some of your debt. However, you will be able to keep most if not all of your property due to the protection of the bankruptcy exemptions. These include such things as your home, vehicle, cash on hand, jewelry, household items, retirement plans, and most other assets. The exemptions vary so you should contact our Eastgate, Ohio bankruptcy firm for further details.

Are you eligible for a Chapter 7 Bankruptcy. Not everyone can qualify for Chapter 7, there are several factors to consider, but most can qualify. Contact our office today for your free consultation to see if you qualify for Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy is also referred to as a “wage earner” plan because in order to file for Chapter 13 protection you must have a reliable source of income so that you can repay all or a portion of your debt,

In Chapter 13 bankruptcy you will pay back a percentage of your unsecured debts, this can range from 1% to 100% depending on your individual situation. Chapter 13 bankruptcy can also stop a foreclosure action and a vehicle reposession and allow you to make up your missed payments through the chapter 13 plan.

If you file for Chapter 13 be prepared to be in the case for a minimum of 3 years and a maximum of 5 years. It will be up to the creditors to file a claim in order to be paid during this case. During this time period you will repay a percentage of your unsecured debts, your secured debts and any missed payments you had on your house or vehicle. At the end you will receive a discharge as to all remaining debt.

For more information check out our website at Keegan

If you are thinking of bankruptcy, contact our Eastgate, Ohio bankruptcy attorneys today. We offer a free consultation, fair fees and monthly payment plans.