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How to get Credit Cards after Bankruptcy
After bankrutpcy, it is important to make a fresh start and rebuild your credit history. To do so, you’ll need to open new credit accounts. Of course, getting approved for a credit card after bankrutpcy is hard. Even so, many creditors are eager to help you get approved.
Step 1: Accept a pre-approved credit card offer. After a bankruptcy, expect to be bombarded with credit card offers. Since a bankruptcy destroys your credit rating, lenders know how important it is for a person to quickly re-build. Hence, many credit card companies target recent bankrupt individuals and offer them easy credit
Step 2: Know the terms. Before accepting a pre-approved credit card offer after a bankruptcy, read the terms carefully. The interest rate on these credit cards are high – perhaps 29 or 30 percent. In addition, a few bad credit credit cards have annual fees, monthly maintenance fees and excessive late fees.
Step 3: Contact your bank or credit union. Your bank or credit union may be willing to approve you for a reasonable rate credit card, especially if you have a good track record with them. Explain your situation and ask for the lowest rate possible.
Step 4: Get a secured credit card. After bankruptcy, getting approved for an unsecured credit card is tough. On the other hand, you can get approved for a secured credit card. Simply put down a down payment with a bank or credit card company and receive a credit card. Persons who submit a $500 down payment receive a $500 limit. Once you make regular payments for two years, the credit card switches to an unsecured account, and you get your deposit back.
Step 5: Get a co-signer. Ask a friend, relative or spouse to be a joint applicant on a credit card. For this method to work, the other person must have good credit. This will help you get a credit card with a decent rate. However, if you fail to make payments, the other person becomes responsible for the debt.
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Should I File Bankruptcy? – The Question No One Wants To Ask By Richard Wilson
Debts are piling up and the creditors are queuing at the doorstep – should I file bankruptcy? When you find yourself backed into a corner of debt and you can’t foresee a way out, then filing for bankruptcy could be the right solution for you.
The stigma of filing for bankruptcy isn’t what it once was. Although it sounds like the end of the world, you can rest assured that you’re not the only person feeling the pinch. Many highly successful entrepreneurs have been bankrupts at some point in their careers and tens of thousands of people file for bankruptcy each year.
Declaring bankruptcy can relieve the enormous weight you have on your shoulders and stop the dreaded calls from the debt collectors, allowing you a fresh financial start; however it does come at a cost. Before you ask yourself should I file for bankruptcy? Take the following into account:
Length of bankruptcy – The length of time you will be classed as a bankrupt for will vary from state to state and country to country, depending on local laws. The standard range is anywhere from one to three years and in certain circumstances, your bankruptcy may be extended even further.
Bankruptcy wipes most debts, not all – While it’s true that most of your debts will be discharged, filing for bankruptcy is not a get out of jail free card. You must still pay taxes and any child or family support payments that you are liable for. Likewise if you still owe for student loans or criminal fines and penalties; these debts and payments cannot be discharged. While you will gain the luxury of not having to make regular repayments, you will lose the right to your non-exempt assets. These will be placed in the hands of a trustee, who will in turn dispose of them in order to pay your creditors.
Loss of Company – Under most circumstances you will be banned from running a company, or being involved with its management without the permission of a court.
Personal Impacts - As a declared bankrupt you may be required to forfeit your passport to a trustee and in many cases you will not be able to leave the country without written permission. Routine tasks such as obtaining insurance may become difficult. You may be required to pay a bond for the connection of electricity, water and telephone utilities. Future job opportunities may be affected.
Furthermore, filing for bankruptcy is the worst thing you can do for your credit rating. The good news is it doesn’t last forever. Once you have been discharged, through sensible money management you can regain a good credit rating relatively fast. This may well be part of the reason why so many people are choosing to file now in search of getting a clean financial slate. So if you’re in a situation where you need to ask – should I file for bankruptcy? Take the preceding information into account, but remember, it’s not the end of the world.
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Do It Yourself Bankruptcy – Lodging the Forms Yourself By Richard Wilson
Filing for bankruptcy can be a difficult time for anyone, but with a little research you can save stress and further embarrassment with a do it yourself bankruptcy solution.
There are no hard and fast rules around filing for bankruptcy. Although the easiest way may be to simply hire an attorney to deal with it, under a time of financial distress this may not be the most sensible approach. For this reason, many people are now choosing a do it yourself bankruptcy approach.
The first thing you will need to determine is whether you actually need to file. Bankruptcy is not something to be taken lightly and while there are good aspects to it for someone in dire financial circumstances, it’s generally a very negative thing to have to do, both financially and mentally. If you are in doubt or there is any uncertainty in your mind over what you should do, you should contact a financial planner or attorney who can offer you sound advice. Generally attorneys or planners can provide basic initial assistance for free, where you’re trying to sum up whether you need to use their services or not. Just make sure the advice is free of charge.
If you do decide a do it yourself bankruptcy is the best option – In nearly all cases the only forms you will need for a do it yourself bankruptcy are freely available online, or alternatively, through your local district courts. The forms are relatively easy to follow and can be completed by anybody, regardless of profession.
Once you have completed the forms it will be in your interest to become accustomed with the fees involved prior to lodgement. As with any court process, there will be filing fees applicable, and these remain even when you are completing the application yourself. Depending on which state or country you’re filing from, you may be eligible to apply to make these payments via instalments, easing the pressure slightly. The best scenario is if you can have these fees waived by a court. If this option is applicable to you it will probably be marked on the initial application or petition form. If it is not clearly marked, a quick search online or a call to your local courthouse should provide you with an answer. In order to have filing fees completely waived, you will normally have to provide evidence that you cannot afford the payments now or in the foreseeable future, along with passing a means test provided by the court.
Once you have lodged the forms your do it yourself bankruptcy is almost complete and you have saved yourself the expense of hiring an attorney. It is now in the hands of the court and you will be advised from here on in of what you will need to do.
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Should I File for Bankruptcy, and what are the Appropriate Steps to Take?
Should I File for Bankruptcy, and what do I do next? This is a question many Americans are afraid (and in denial) to ask. Bankruptcy is indeed a hard pill to swallow. However, if your financial situation has really been affected by the recession and you’re on the verge of losing everything, now’s the perfect time to ask yourself the question honestly, then educate yourself about surviving bankruptcy.
So, should I file for Bankruptcy,? According to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), prior to filing for bankruptcy, one must obtain consumer credit counselling within 180 days of the date of the bankruptcy filing. Credit counselling should be from an entity approved by the U.S. Trustee. This is important to educate yourself with other alternatives than filing a bankruptcy case.
After answering the oh-so-important question: should I file for bankruptcy, one should know about the important steps to take next. First of all, make damn sure that you have no other alternative. Bankruptcy will appear in your credit history file for up to 10 years. However, if your financial situation is in real bad shape, bankruptcy will allow you for a fresh start.
There are actually two common types of bankruptcy. The most popular is the straight or liquidation bankruptcy. Another is the Repayment Plan. Liquidation Bankruptcy is much more difficult to obtain because of the means test, thus, many people are forced to file the latter type of bankruptcy plan.
Another important question is ‘Should I hire a lawyer?’ Some choose to file without the help of a lawyer, although it’s highly recommended to get a lawyer. Of course, you should know how much it costs. Some lawyers give a flat rate, while others base it on the amount of debt you have. Others let you pay in instalments, while others require you to pay up front. Average lawyer rate is around $1,700, but may vary depending on the state you are living in. Meet with the lawyer so the two of you could go over your case, so he can determine which bankruptcy is best for you, based on your financial state. There are some states that allow you to file for free if you don’t have the financial means.
Refer all your creditors to your lawyer, so they will be able to speak on your behalf (Which means, equals no more annoying calls at your home and office! Hooray!). Once a lawyer has filed your case, absolutely no creditors should contact you regarding your debt. If they go against this, a wilful violation will be assessed against the creditor, including attorney’s fee, appropriate cases and punitive damages.
Now that you are equipped with all the right information, you can now ask ‘Should I file for bankruptcy,?’ with no hint of fear or uncertainty.
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