Steger Bankruptcy Lawyer On Life After Bankruptcy

 Clients always ask me is there going to be life after bankruptcy.  Will I ever get credit again?  Will I be able to buy a car again?  When will I be able to buy a house?  I always advise these clients that not only is there life after bankruptcy, but there’s often a better life after bankruptcy because you no longer have the debt hanging over your head.  

You can buy a house within two years of filing a bankruptcy.  You can buy a vehicle immediately after filing a bankruptcy.  You can get credit again.  In fact, you will get credit offers before your case is even completed.  Now, I advise those clients to avoid those offers, because they’re going to be high interest or they’re going to be high annual fee. 

But what I do recommend is that people get a secured credit card.  A secured credit card is a credit card whereby you as the debtor put a dollar amount in a bank account, whether it is $250.00 or $500.00, and the bank issues you a secured credit card with that amount of charging privileges.  The benefit of a secured credit card is not only do you have the convenience of plastic, you are charging your own money that you have on account, but it’s being reported to the credit bureaus as a debt, as a debt that is changing your credit rating, increasing your credit score over time.  And eventually, that secured credit card may likely turn into an unsecured credit card, which puts you back in a good credit situation, continues to increase your credit score as it’s being reported to the three credit bureaus as an unsecured credit card, doing you a justice. 

So you want to get credit after bankruptcy.  You will get offers for credit.  You just want to be smart about the type of credit you get, and of course, how you use that credit.  

If you can go on a cash basis for six months to one year after a bankruptcy filing, that is what I strongly recommend.  If you can learn to budget after a bankruptcy case, that is what I strongly recommend.  Opportunities will arise, you will be able to purchase a vehicle, and you will be able to purchase a house, but most importantly, get your own financial house in order.  Make sure that you’re saving more than you’re spending each month after your bankruptcy.
For more information, visit Steger Bankruptcy Lawyer or call (847) 520-8100.