Since the real estate reckoning of 2007 launched what would become a global economic meltdown, average Americans just like you have been taking advantage of the sure-fire safe havens of personal bankruptcy. But part of successfully joining the more than 1.5 million people who will file in 2011, is planning for life following the fruition of that bankruptcy.
In fact, with so many people facing income deficiencies due to underemployment or unemployment in 2011, it’s work revisiting the best advice for an effective bankruptcy. Here’s part two of a two-part series picking up where we left off with the TOP TEN tips for making a 2011 bankruptcy work for you:
(6) Calling All Lenders.
One of the most important steps in bouncing back from your personal bankruptcy is rebuilding credit. In the process, you’ll need to interview three specific types of lenders: (1) automobile; (2) credit card; and (3) personal lenders. During these interviews you’ll want to find out whether you can be approved for credit (and when) despite your bankruptcy filing; their minimum credit score requirements, including whether you’ll need a co-signer to qualify; and any recommendations for other creditors willing to work with people who’ve just filed for bankruptcy.
(7) Securing a Credit Card.
A secured credit card is one that is literally “secured by your money deposit” already. While secured cards may hold less weight in terms of rebuilding credit (as they may not be signifiers of significant credit risk), they’re a great way to re-establish a post-bankruptcy filing credit line. If you have the choice, choose a secured card where the credit limit is more or equal to the deposit. This shows credit risk and therefore allows you to recoup credit health more quickly.
(8) Securing an (Unsecured) Credit Card
You may also qualify for an unsecured credit card with a lower credit limit. These cards are even more desirable than the secured cards, representing more credit “risk” and allowing you to show a regular payment history on unsecured credit. Whether unsecured or secured, however, make sure these cards report to all three major credit agencies. Without those reports you cannot certify improvement on your full credit history for a better financial future.
(9) Using Larger Banks and Credit Bureaus.
It’s important to find out the bank that’s issuing the credit card and verify the name with the FTC, avoiding finance companies and rental lenders. Your credit score will heal even faster with the help of larger and more reputable institutions.
(10) Keep Your Spirits High as you Raise Your Credit.
A bankruptcy filing can discharge debt and allow you to save for your next financial steps, including your home, your child’s college fund and even retirement. In short, bankruptcy can end the worry and stress of living on the financial brink…a comeback any of us can appreciate. While you may be denied credit in the process, keep your chin up and know that in little time your credit score will rise as quickly as your spirits.
Understanding the pre-and post bankruptcy landscape can be difficult. Getting to know a qualified bankruptcy attorney can be the first best step to help any financially insecure person conquer their creditors, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.