Round Lake Beach Bankruptcy Attorney Offers Post-Filing Credit Advic...

After a Chapter 7 bankruptcy case, you will be offered credit by several different lenders states Round Lake Beach bankruptcy attorney.  The most common is an auto finance company that wants to get you back into a vehicle immediately after your bankruptcy case is filed.  This type of financing is known as open financing or open bankruptcy financing in that they are not waiting for your case to go to discharge before they offer you the financing.  Several years ago, you were not able to get auto financing until your case actually went to completion.  Nowadays, immediately after your case was filed, there are aggressive lenders who are willing to take a chance on you and sign you up for financing before your case has even gone through to completion. 

By the same token, there are credit card lenders who are also going to try to entice you with their offers.  Be leery of credit card offers too close to filing bankruptcy.  These cards are going to often have an annual fee, high interest rates and other rules and regulations that someone who did not have a recent bankruptcy would have. 

I recommend if you could go on a cash basis for the next six months to one year after filing a bankruptcy, you will be doing yourself a good service.  For one, you will not fall under the trap of credit again.  Two, you will be able to actually see what you are spending.  Studies have shown that when people actually use cash for spending, they wind up spending less than when they use credit.  And that makes sense because it’s very easy to pull out the credit card and charge it and worry about paying it later.  It’s very difficult to actually pull out cash and see the money leave your hands on purchases that aren’t really that important to you.