Bankruptcy is intended to offer a fresh start, so make the most of it. After the bankruptcy has been completed, take a deep breath and start the rest of your life. There is indeed life after bankruptcy. Life after bankruptcy should be different – and better – than life before bankruptcy, and for many people it certainly is. However, there are some traps waiting for the unwary.
Don’t Get Caught in the Credit Card Trap
The credit card companies know that after someone has consulted Bankruptcy Attorneys in Colorado Springs and filed for Chapter 7 bankruptcy, they cannot file again for 8 years. What that means to an unscrupulous credit card company is that they can give you a card with no worries about having the debt discharged. Anyone who has not learned how to budget and manage their finances is letting themselves in for years of harassment from bill collectors.
These credit cards are not the same as the credit cards people had before the bankruptcy. They are high risk cards. Some of these cards have a monthly administration fee that is significant. If the cards go over the limit, a hefty over limit fee will be assessed. Before accepting any new credit card, read the conditions carefully. Chances are good that it’s far better not to get the card.
How to Rebuild Credit With a Bank or Credit Union
Open a savings account for $500, then apply for a secured $500 loan. The savings account will have a hold put on it by the bank, guaranteeing the bank that they will never lose money on the loan. Make every loan payment on time. In a few months, you will have established credit with a bank that will be far more meaningful than credit gained from a high risk credit card.
Always Pay Your Secured Debts Before or On the Due Date
Paying the mortgage or car payment on the due date is critical to rebuilding your credit rating.
After a bankruptcy, it’s important not to repeat previous financial errors. Bankruptcy Attorneys in Colorado Springs devote themselves to helping their clients get a fresh start. Attorney David M. Koppa has been focused on providing caring legal bankruptcy guidance for his clients for over 25 years. He offers a free consultation to discuss the individual situation and explain the available options.
