Will I ever get credit again is a common theme that potential bankruptcy debtors ask of this Richton Park bankruptcy lawyer. This question gets asked of me probably more than any other question. People come into my office, they are struggling financially, they have credit card bills, they have medical bills; their utilities are subject to shut off. They may have had a vehicle repossessed. They may be in foreclosure. But you know what they want to know? Will I ever get credit again?
I say to these clients let’s get you out of debt first and then we can worry about you getting credit again in the future. The truth is the clients will get credit again in the future even if they claim bankruptcy. The truth is they will get credit sometimes before their Chapter 7 bankruptcy case has even concluded. Finance companies and other creditors and other lenders and credit issuers subscribe to a service that lets them know who has filed for Chapter 7 bankruptcy protection. Those finance companies and creditors can then solicit my clients without me knowing it for future credit. Car dealers, auto finance companies are notorious for sending letters before a case is even concluded, attempting to get the debtor to finance a vehicle through them.
So credit will be available after a bankruptcy case is filed and in my opinion, credit is available too soon. I like to see my clients go on a cash basis for about six months to a year so that they can realize how much they are actually spending per month on various items. It’s easy to get a debit card immediately if you want the convenience of plastic but if you want to spend your own money. It’s easy to get a secured credit card where you put $250 or $500 in a bank account and you get to charge using your own money. The secured credit card gets reported as a positive transaction to the credit bureaus so it’s really a great idea after a bankruptcy to get a secured credit card. It’s also a good idea to get a couple other lines of credit started or continue with, such as a mortgage or a vehicle payment. These things will help increase your credit score in the future which is important because it could affect how much you are paying for financing in the future. Your local bankruptcy lawyer should be able to assist you with getting back on your feet after a filing.