Using Credit Wisely after Bankruptcy

When you finish up your bankruptcy case, you need to manage your finances carefully, so you do not incur too much debt again. Once you receive a discharge in bankruptcy, you must wait a full eight years to receive another Chapter 7 discharge.

It is generally a good idea to wait before you start applying for more credit so you can get used to having the available income to cover unexpected expenses.

Credit Offers

Shortly after you file for bankruptcy, you will start to receive credit offers often at a high interest rate. If you can hold on for a few years and prove to the lender that you can pay your bills on time and have had no further financial issues, you should receive credit at a decent rate.

Avoid those that offer credit with advertisements such as “Bad Credit, No Credit, No Problem” these rates will be extraordinarily high, making it almost impossible to keep up with the payments.

Targeting Consumers

Also, be careful of credit offers targeted for recent bankruptcy consumers. These may be an attempt to collect money on a discharged debt. The fine print of the credit offer will state that after you pay off the balance from the previously discharged debt, you will get more credit added to the account.

During the bankruptcy process, you are required to take two debtor education courses, take advantage of the law, and learn all you can about personal finances and how to stay out of overwhelming debt.

Contacting a Fort Worth bankruptcy attorney can get you started on your fresh financial start by eliminating qualifying debt.