Can I Reestablish Credit after Bankruptcy?
A common concern for many people going through bankruptcy is whether they will be able to reestablish their credit after the bankruptcy process has concluded. While this may seem like a dangerous thing for someone coming out of bankruptcy, debt is a practical part of modern life that many people simply cannot afford to go without. It is important to know that a person will still have options, even after bankruptcy.
If your finances have reached their breaking point and you need help moving towards a fresh start, you may want to consider bankruptcy. Contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today to discuss the possible benefits of a bankruptcy filing in your particular situation.
3 Things to Remember when Reestablishing Credit
A debtor heading into bankruptcy should try to remember these three things about credit:
#1: Credit Cards May Survive Bankruptcy
A debtor has the option of affirming a credit card’s line of credit during their bankruptcy. This means that the debtor accepts responsibility for paying the debt, and it will not be discharged with other debts through bankruptcy.
#2: Many Banks Will Refuse Requests
It is a simple fact of bankruptcy that many banks will not allow debtors going through bankruptcy to apply for certain credit cards. A debtor needs to stay optimistic, but also should keep in mind the reality that most banks are unlikely to grant desirable credit opportunities to those with a bankruptcy on their record.
#3: Some Options Still Remain
Although many banks will refuse bankrupt individuals from getting cards with large credit lines, they will not necessarily stop a debtor from getting a line of credit altogether. Some banks offer credit opportunities for those with weak credit scores, although these cards may have high interest rates and a low credit ceiling.
If you have been struggling to keep pace with your financial obligations, it may be advisable to consult with a skilled and experienced attorney. Contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.