There is a life after bankruptcy, and you will be able to reestablish credit after filing. In fact, you will receive many pre-approvals in the mail from lenders offering to
finance homes, new car loans and credit cards.
Having bad credit immediately after a bankruptcy discharge is a given, but it doesn't mean you can't restore your credit rating so you can have a life after bankruptcy. Bad credit repair takes time, but can be accomplished within a one to two year time period with sound credit practices.
Here are few a suggestions to successfully reestablishing your credit after a bankruptcy. First, open a checking or savings account if you don't have one. Lenders sometimes look at this to determine if you are responsible with handling money. Next, obtain a secured or unsecured credit card and make on-time monthly payments while keeping your balances low. Third, stay clear from payday loans that come with high interest rates and don't get stuck in a payday loan trap. Finally, live within your means and try not to take out high interest rate loans that will be offered to you immediately after bankruptcy because you don't want to get back into a financially strapped situation again. Remember, these lenders that are willingly offering you loans after bankruptcy know that you will not be able to file a bankruptcy petition anytime soon.
There is a life after bankruptcy because it should place you in a much better financial condition. Rebuilding your credit will however take some time and can easily be accomplished with sound credit practices.
Did You Know? The tax obligations of the person filing a bankruptcy petition (the debtor) vary depending on the bankruptcy chapter under which the petition was filed. Generally, when a debt owed to another is canceled the amount canceled or forgiven is considered income that is taxed to the person owing the debt. If a debt is canceled under a bankruptcy proceeding, the amount canceled is not income. However, the canceled debt reduces the amount of other tax benefits the debtor would otherwise be entitled to.