Bankruptcy > Rebuilding Your Credit After Bankruptcy

Rebuilding Your Credit After Bankruptcy

by: Frank Bruno

In the past, filing bankruptcy was like having a Scarlet Letter on your chest. Bankruptcy made people outcasts and pariahs. It was as if a contagious disease struck, and no one wanted to be near you for fear of infection.

Today, bankruptcy doesn?t quite have the stigma it used to. Many of the world?s most successful people have filed for bankruptcy. These people hit rock bottom, and have bounced back to become wildly successful.

To emerge from bankruptcy requires diligence and discipline. In order to get back on your financial feet, you must rebuild your credit.

If you filed a chapter 13 bankruptcy, you had to make your court-ordered payments until the bankruptcy was satisfied. Even though you made great strides financially by doing so, lenders don?t see it quite that way. Lenders don?t consider your bankruptcy payments as a way to rebuild your credit. In fact, the ?rebuilding credit? clock starts after it?s discharged, no matter how long it takes you to pay while in chapter 13.

If you filed a chapter 7 bankruptcy, rebuilding won?t take quite as long. When you file for chapter 7 bankruptcy, your debts are essentially wiped out, and you start all over. Once your chapter 7 is discharged, which usually takes a few months from when you filed, your rebuilding credit clock starts.

When you file for chapter 7 bankruptcy, you have the choice of reaffirming some of your debt. In other words, you can choose to keep some of your credit lines open instead of having them wiped out. This is an option you might want to consider, especially if you have smaller credit cards with low balances (under $500). By continuing to pay your reaffirmed debt, you can help rebuild your credit with timely payments and low balances.

Regardless of which bankruptcy you file, there will come a time when the bankruptcy is fully discharged. It?s almost like being free after years in prison ? you made some mistakes, you paid for them, you (hopefully) learned your lesson, and you?re looking to make a fresh start. Now, you have to rebuild your credit.

Paradoxically, you need to obtain credit to rebuild credit, but you can?t obtain credit if you just invalidated your creditors. One of the best and most popular ways to begin the process is to obtain a secured credit card. With a secured credit card, a credit company will extend you a credit line in exchange for a cash deposit. Your credit limit is usually equal to, or a percentage of, your deposit. Rarely, if ever, will it be higher than your deposit.

These credit cards are not hard to find. In fact, since bankruptcy is public record, many of these companies will find your name at the county courthouse and send you a solicitation to apply. You must be careful when dealing with these companies. Some are notorious for ?kicking you when you?re down.? In addition to the deposit, they will charge you exorbitant junk fees and interest rates. Always read the fine print in the solicitation. As required by law, they must disclose their fees and rates to you.

As well, make absolutely sure that the credit card company actually reports your payment history to the three major credit bureaus. Getting a secured credit card is worthless if your history isn?t reported. It?s worth repeating that you must find out if they report to all three bureaus, as opposed to just one or two. You will handicap your rebuilding efforts if the history does not show up on all three.

Lastly, make sure the credit card is an actual Visa or MasterCard. Some credit companies offer credit cards that are only usable on their own products. They look like real credit cards, but if they?re not Visa or MasterCard, you can?t use them anywhere of consequence.

Once you have discharged your bankruptcy, obtain a copy of your credit report from the three major bureaus. In order to start your rebuilding credit campaign, you must know where you stand. Filing bankruptcy will have a tremendous impact on your credit scores. When you know where your score stands, you can take the necessary steps to boost them in the shortest possible amount of time.

About The Author

Frank Bruno has spent the last 3 years assisting hundreds of clients in saving thousands of dollars in Interest rates by teaching them unique techniques on how to quickly and dramatically raise their credit scores. For more information please visit his website- http://www.CreditScoreBooster.com.

Bad Credit Repair

by: Jonathan Cheong

Building your credit after repeated interruptions is a constant headache we all want to avoid. In this article I am going to break it on down for you, since there are many sources that will take full advantage of you when the opportunity arise. If you feel bad simply because you can?t meet your bills expectations at the moment they arrive, then you are not alone.

The fact is, even the best of us are struggling to meet some expectation that the system has placed on us. We calculate weekly the amount we spend on groceries, which are constantly increasing, as well as other bills that are constantly on the rise. It seems at times it is a no win situation, but the fact is there is always a solution to most problems.

The problem most times is some of us do not have the means to find those solutions. This brings forth more stress and often we feel that we are alone. If you trying to build your credit status...

Bad Credit Repair

Bankruptcy > Bad Credit Repair

Defining Bankruptcy

Defining Bankruptcy

by: John Mussi

Considered to be a hot topic by some and a grim reality by others, bankruptcy is a serious issue that many people around the world find themselves having to deal with. A large number of people live in fear of bankruptcy, and even more live with a number of misunderstandings and half-truths that prevent them from knowing exactly what bankruptcy is and how it works. Before making decisions about whether or not to file for a personal or business bankruptcy, it's important to take some time and research both what bankruptcy is and what it isn't? and to see what alternatives to bankruptcy might exist.

The information provided here isn't meant to answer all of the questions that you might have concerning bankruptcy, but it will hopefully help you to find some of the answers that you need and get you that much closer to making a very important financial decision.

What Bankruptcy Is

As the name might...

Defining Bankruptcy

Bankruptcy > Defining Bankruptcy

Debt Consolidation - Choose a Credit Counselor Carefully

Debt Consolidation - Choose a Credit Counselor Carefully

by: Charles Essmeier

Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will require people who are filing for bankruptcy to first undergo mandatory credit counseling.

This is probably not a bad idea; after all, many people with problem debt could probably benefit from credit counseling.
A good credit counselor can assist clients with problem debts in establishing a repayment schedule, creating a personal budget, and learning how to avoid debt and credit problems in the future.

The problem is that with the estimated one and a half million additional people seeking credit counseling each year, there will undoubtedly be more credit "counselors" entering the market, and many of them are only interested in reaping huge profits at the expense of their clients.
There are already a number of credit counseling firms working...

Debt Consolidation - Choose a Credit Counselor Carefully

Bankruptcy > Debt Consolidation - Choose a Credit Counselor Carefully

The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

by: Charles Phelan

In April 2005, Congress made sweeping changes in U.S. bankruptcy law that will go into effect on October 17, 2005. It's called the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," and it means big trouble for Americans struggling with debt problems.

What effect will the new bankruptcy law have on the practice of Debt Settlement (also called Debt Negotiation)? Will creditors still be willing to negotiate with consumers seeking to avoid bankruptcy? Will lump-sum settlements for 30%, 40%, 50% still be possible now that this tough new law has been passed?

The short answer is "YES." It will be "business as usual" in the collection industry. People that choose to file bankruptcy will definitely be affected for the worse, as I'll outline below, but those who choose to privately negotiate their way out of debt will notice very little difference. Creditors...

The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

Bankruptcy > The New Bankruptcy Law -- How Will It Affect Debt Negotiation?

Can Debt Consolidation Help You Avoid a Financial Emergency?

by: Rachel Smid

Studies have shown that most filed bankruptcies are caused by a few specific reasons. Unexpected medical bills, divorce, and unemployment are the three biggest causes behind bankruptcy. However, these things alone do not usually lead to bankruptcy. Usually, people who are financially in jeopardy find themselves unable to avoid bankruptcy when these things occur. The signs of bankruptcy, though, are usually present long before bankruptcy actually happens. You may be vulnerable:

?If you are living paycheck to paycheck. If you are unable to put any money aside after you have paid your bills, then you are very vulnerable. If your paycheck were interrupted for any reason, such as unemployment or illness, you would not be able to afford living without borrowing. If you are living paycheck to paycheck, you would not be able to afford any debt payments or any unexpected expenses....

Can Debt Consolidation Help You Avoid a Financial Emergency?

Bankruptcy > Can Debt Consolidation Help You Avoid a Financial Emergency?

Bankruptcy Rebuilding Your Credit After Bankruptcy

Southend-On-Sea City Guide, Including Hotels

by: Ms Maria Williams

Southend-on-Sea is Essex?s largest town and its close proximity to London makes it a popular tourist destination year after year. Better still, it is located in the south east of the country in an area widely regarded as the driest part of Britain.

The town is chock-full of interesting attractions which are aimed at all the family, whether you?re looking for local history, the arts and culture,...

Bankruptcy

Bankruptcy > Southend-On-Sea City Guide, Including Hotels

Bankruptcy Rebuilding Your Credit After Bankruptcy

Bankruptcy Rebuilding Your Credit After Bankruptcy student loans

Consider This When Searching For A Hotel

by: Jeff Lakie

People travel for many different reasons, for business or pleasure. When you're traveling you can find many good hotels that provide good value for your dollar. But there are many other considerations you should make when you're looking for a hotel. When you are looking for a hotel, there are many ideas to help you choose:

Cheapest? The cheapest hotels are not always the best option for the budget...

Bankruptcy Rebuilding Your Credit After Bankruptcy pool table Consider This When Searching For A Hotel

Bankruptcy > Consider This When Searching For A Hotel

mortgages Bankruptcy Rebuilding Your Credit After Bankruptcy

Bankruptcy Rebuilding Your Credit After Bankruptcy