Credit After Bankruptcy
Most people think there is no life after bankruptcy, much less credit. If it's the first time you have experienced bankruptcy, it is understandable. People tend to feel once they have been declared bankrupt, no creditor will look at them. That no one will have confidence in them anymore to extend credit to them. However, this is not true. You can avail of credit even after bankruptcy.
Once you are declared bankrupt, whatever assets you possess will be used to cover your debts. You will be expected to start afresh as far as your earnings and savings are concerned. But did you know that you can keep your credit card even after you are declared bankruptcy.
What this means as far as you are concerned is that you have access to credit through your credit card. It could happen, of course, that your card company could just find out about the bankruptcy and have your card cancelled, the way American Express does to safeguard themselves against bad debts. But many companies let you continue to keep and use your card provided you reaffirm the debt amount and this should be after you do the filing for bankruptcy. So your credit continues and it will, on condition that you take on the original amount of your debt.
Is there any rationale behind this? Creditors, as is understandable, do view bankruptcy as a threat. But they also see your line of credit as their business. If they cut this off, how will they recover the money that you owe them? By using bankruptcy to exchange credit for full payment of your debt, they safeguard their own interests and do not lose out.
Bankruptcy for most is wiping the slate clean and the chance to start anew. The credit companies want to be there when that happens which is why they allow you to continue using your card after bankruptcy. It is not as though there will not be consequences however. There will be conditions imposed on you by the credit card companies after bankruptcy and you will have to comply with them if you want to hold on to your card. You'll find you have a lower limit and this is a wise precaution that any company will take as you have just proved your unworthiness as far as credit is concerned.
So you will be muzzled and will not be able to spend more than you can afford to pay. Some companies make you shell out more if you want the privilege of holding on to their card. This is yet another precautionary measure by companies. So while credit after bankruptcy is hard, it's not impossible and you can enjoy it with a few rules to rein in your spending.
Related Tags: bankruptcy law, chapter 7, bankruptcy attorney, filing for bankruptcy, credit after bankruptcy, chapter 11 bankruptcy law
If you are faced with Bankruptcy, try visiting
http://bankruptcy.explore-me.com, a popular bankruptcy website that
offers tips, advice and resources including information on
Buying A Home After Bankruptcy and Credit After Bankruptcy.
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are
