There comes a time in life where you are reduced penniless and one cannot imagine a worst scenario, which sadly many people have gone through right from film stars to other celebrities where you have to dance to the tunes of San Diego bankruptcy attorneys to get out of this mess but this article is something that involves credit and we’ll see how.
If you are in the position where you are considering whether or not to file bankruptcy, you are probably thinking about your future credit options. Bankruptcy should be your last option when you are in debt, as you will find that your credit takes an even bigger hit when you file. However, this does not mean that you won’t get the chance to start over again once you file and get everything squared away. Always find professional help to hear all of your options, but if bankruptcy is all that you can do, you should know your financial world is not completely dead to you in the future. There is credit after bankruptcy.
There are some companies that will extend you credit after bankruptcy for the simple reason that they know you need it, and they also know there is an extended time between filing and when you might be able to file again. That means early on they know they have a better chance of getting their money out of you because you will not be able to turn around and file again if you default. They know you are a risk, however, and that means any credit after bankruptcy that you get will have a higher interest rate and higher penalties on late or missing payments.
You may even find that some of the companies that just lost out to you will try to offer your credit after bankruptcy. This happens when your debt is discharged and you are no longer in their system. Some companies are so large that they don’t keep track of these old debts that have been written off, and you could be anyone to them. The same rules will apply with this credit after bankruptcy. You will pay more for the privilege of having credit through them, even if they don’t remember that you have already been a customer.
When you are looking for credit after bankruptcy, remember that you have to use your head. You filed bankruptcy because your credit was bad, and you had no way to reasonably pay off all of your debts. If you have filed, you may not be in a better position, and getting credit directly after bankruptcy could put you back in the hole sooner than you think. It doesn’t make any sense to file and then put yourself right back where you started. Think about things before you do them, and make sure you know you are in a better financial position before you attempt any type of credit situation. If you need to, get help with budget, spending habits, and how to save your money for the future. Consumer credit counseling is always a smart idea in these cases.