Yes, there is life after bankruptcy! For the first time in a very long time you will not owe any money. A debtor still will owe monies to your car company, or to the mortgage company if they chose to reaffirm these debts. A debtor will not be subject to harassing phone calls and letters from bill collectors.

Don’t be misled by the myth that a bankruptcy on your credit record means that you will never be able to obtain new credit ever again. A debtor will have to work to reestablish their credit. However, this is not an impossible task. If a debtor establishes a good payment history after the filing, then this factor can be very important in convincing a car dealership to give you a new car loan.

Moreover, it is not impossible to get a new mortgage after you file for bankruptcy. However, debtors who file for bankruptcy normally receive higher interest rates on their car loans, or on their mortgages. These types of notes can be refinanced if the debtor has a good payment history for at least 24 months.

In summary, bankruptcy does not ruin your financial life after you file. If a debtor earns a decent living, then he or she can certainly rebuild their credit, and make it even better than before they filed. Bankruptcy can be the beginning of a better financial life. Bankruptcy does not have to be the end of credit opportunities!

LIFE AFTER BANKRUPTCY: GETTING A HOME OR CAR

Many people are shocked to learn that they will be able to get a mortgage to buy a home, or loan to buy a car after bankruptcy. The ability to obtain credit is impaired by filing for bankruptcy. However, it is not ruined. The key issue is the salary of the debtor when they are making the loan application. If the debtor earns a good living, then it is quite likely that a mortgage company, or an auto finance company may offer a mortgage or a car loan to that individual. However, no matter what you have heard, the interest rates will be higher.

Most people have seen ads that tell you that you can buy a car or qualify for a mortgage even if you’ve just come out of bankruptcy. What those ads don’t tell you is that the interest rates and other fees you will pay to get the loans will be extremely high. A debtor must “shop around” for the best type of mortgage or car loan that they can obtain. If the interest rates are too high on a car note, then the length of the car loan can be doubled. Moreover, if the interest rates are too high on a mortgage, then the debtor never will be able to gain any equity in the home.

Many of my past bankruptcy clients have gone on to purchase homes and automobiles, and have done so after as little as two years following the completion of their bankruptcy case. These people have approached their post-bankruptcy lives intelligently. These people have recognized that bankruptcy can be a “once in a lifetime opportunity.”

In short, if a debtor continues their reckless ways of blowing money, and paying bills late, or not paying them at all, then they will not be able to repair their credit. However, if a debtor learns from their mistakes, then they can repair their credit, and they can have a bright financial future. Repairing your credit is not easy, and it will take work. However, nothing that is worthwhile in this world can be achieved without effort and determination.

LIFE AFTER BANKRUPTCY: GETTING NEW CREDIT CARDS

It’s a fact of modern life that you must have at least one credit card in your wallet for emergencies. A person often needs a credit card for emergencies such as car repairs, or getting stranded in an unknown place. A debtor does not always have an easy time to obtain a new credit card after they file for bankruptcy. Of course there are many companies that are willing to offer you a new credit cards. However, quite often the interest rates are 20% or more. Bookies charge a lower interest rate.

A debtor’s first post-bankruptcy credit card should be a secured Visa or MasterCard. Many credit car companies offer these credit card accounts. These types of accounts are secured by a savings account held within the bank. These savings accounts earn interest, and they will not be touched unless you use the credit card, and if you fail to make one or more payments. Secured credit cards are widely available. However, please be sure to read the fine print to determine costs and terms of the credit agreement. The interest and the Annual Percentage Rates (APR %) can be very high, and the penalties for late payments may also be  costly.

Articles

Chapter 7 - Getting a fresh start.

 Chapter 13

Tragic misconceptions about bankruptcy.

17 Debts that might not be discharged in your bankruptcy.

13 Rules you must know before filing bankruptcy.

 Stopping creditors

 Immediate relief after the bankruptcy petition has been filed.

Foreclosure of your mortgage.

 Life after bankruptcy.