Bankruptcy Chapter 7 and Rebuilding After it's Over

July 8, 2010 - PRLog -- When people file a Chapter 7, it means that something has changed in their lives. One possible change is the need to give up a car. The idea of the bankruptcy is to be able to start over; meaning that when the income goes back up, you may be able to go buy another car. Lenders are more worried about your income than about the fact that you had to get a divorce or lost your job. Think about whether you can really afford the car that you want now. Because of your higher interest rate, do not buy the most expensive vehicle.

There will also be all kinds of credit card offers, so be sure and read the fine print. The good ones might have an annual fee of fifty or so and a 24% interest rate. Be sure to not leave much of the balance each month. A year from the first payment, the offers will begin to get better.

The goal is to rebuild your credit rating as fast as you can by never taking a big chance by purchasing something that you can not afford.

If you think that incurring debt with a new credit card is a good idea, think again. Do you remember the reason you filed bankruptcy in the first place? Is incurring new debt with credit cards a wise decision? I strongly recommend against it, in addition to the Chapter 13 Trustee not allowing it.

The only items from which you can incur debt while in bankruptcy are houses and cars. Credit cards are off limits. In a Chapter 7, it does not matter if you get a credit card, because you will be out of bankruptcy within four to five months. Generally, creditors will not extend you credit until you have been out of bankruptcy for at least 6 months. You really should reconsider, but it is up to you if you want to get those credit cards going again.

Before you get credit cards, think about the situation and whether or not it is really worth the consequences. You may end up in the very same situation in which you began, and may be forced to go through the entire process again. In a chapter 7 you will have to wait 8 years from the date of filing the first Chapter 7 to do the process over. Contact your attorney’s office to discuss the situation before making any final decisions.

If you would like to find more information on attorneys in your area such as a bankruptcy lawyer in Arizona or a bankruptcy attorney in Illinois please fill out a free evaluation.

For more information visit http://www.bankrupcy-alternative.com/questions.html or call us directly. Here is another bankruptcy article http://www.prlog.org/10782497-the-bankruptcy-wage-directi... for your reading enjoyment.

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