Credit card debt is a type of unsecured debt. This means that if you file for Chapter 7 bankruptcy you’ll be able to discharge your credit card debt. If you file for Chapter 13 bankruptcy, you’ll be required to repay some or all of your credit card debt over a period of 3 to 5 years. However, whether you file for Chapter 7 or Chapter 13, you’ll still be able to apply for a credit card after bankruptcy.
Many people are under the impression that bankruptcy is the end of the world when it comes to building your credit. It’s true that a bankruptcy stays on your credit report for up to seven years after you file. This doesn’t mean, however, that you’ll never be able to rebuild your credit again. It’s very possible to get credit cards after bankruptcy by showing financial responsibility. It may take a little while before you can get a credit card that has a great interest rate or great perks, but if you pay off your balance every month and show that you can manage your finances appropriately, you shouldn’t have any trouble rebuilding your credit after bankruptcy.
In many cases people fall into bankruptcy due to circumstances that are out of their control. For example, unforeseen medical expenses, a lost job, or the poor housing market might have led you to Chapter 7 bankruptcy or Chapter 13 bankruptcy. In these cases, you can strengthen your credit rating simply by maintaining a proper budget, paying your bills on time, and working hard to remain in control of your finances.
If you had to file for bankruptcy because you racked up too much credit card debt or were irresponsible with your finances, you might have a little bit harder time rebuilding your credit, but that doesn’t mean that it will be impossible. It’s a good idea to wait to get a credit card after bankruptcy until you’re sure you can use it responsibly. If you know that you have a problem with overspending, consider taking a class about creating a budget and spending wisely. Such classes are typically available at local community colleges and sometimes through local banks. Your San Diego bankruptcy lawyer can also help point you in the right direction after your bankruptcy proceeding is finished.
Applying for Credit Cards after Bankruptcy
Once you’re sure you have control of your finances and you have a bit of money saved, then you can apply for credit cards after bankruptcy. Be sure to choose a credit card with an appropriate limit and a reasonable interest rate. Read the fine print before signing up for any credit card – you don’t want to get stuck with a variable APR or high penalties that you won’t be able to pay. Once you have your credit card, be sure to use it wisely. Only put as much on your credit card as you will be able to pay off within that same month.
By using a credit card for purchases and then paying your card off in full every month, you’ll be able to slowly rebuild your credit and show that you can be financially responsible.
Consult a San Diego Bankruptcy Attorney
If you have questions about life after bankruptcy or bankruptcy proceedings in general, talk to a San Diego bankruptcy attorney about your unique situation. A lawyer can answer your questions, help see you through the bankruptcy process, and set you in the right direction once your case is complete.
Attorney Scott Orona has been helping people during their bankruptcy proceedings for over 20 years. As a San Diego bankruptcy lawyer, he has been involved in over 8,000 bankruptcy cases. With Scott Orona on your side, you can be assured that your bankruptcy case will be handled by a professional that is experienced, knowledgeable and committed to helping you recover financially. To enlist Attorney Orona's help, call 619-306-7627 today to arrange your free case evaluation.