Bounce Back With Caution After Bankruptcy

Personal Injury Lawyer

One of the biggest fears that people have when considering bankruptcy is their credit score. Will they ever be able to build their credit again? Is it better to keep the debt and pay it off than to file bankruptcy? In a lot of cases, bankruptcy is the better option. This is especially true if your debts are too high that you will not be able to pay them off within the next five years. If you decide to file bankruptcy, don’t worry, you can still rebuild your credit! You just want to stay careful through the process.

Remember Why You Filed Bankruptcy

Once you file bankruptcy, after it’s over, it is easy to forget the amount of stress that you were in before you filed. You do not want to go out and get a credit card right away. In a lot of cases, you cannot receive one right away and if you do receive offers as soon as you are finished with the case, these are going to be credit cards with high interest rates. You want to be careful about the credit cards that you choose. You do not want to end up in the same position that you were to begin with. Only apply for cards that you can afford and make sure that you always have money to pay off the balance.

Consider a Secured Credit Card

Secured credit cards are a lot like unsecured credit cards. They work the same. The big difference is that you have to pay a refundable security deposit. The deposit that you pay will serve as your credit limit. This provides your card issuer with collateral. You can then use the credit card like you do any other credit card and make your monthly payments. The best part about these cards is that they have a lower interest rate and so you can use them without fear of being unable to pay them off.

When it comes to bankruptcy, you can always build your credit again. This is a tool that can help you alleviate some of your debt, but it does not have to ruin your credit forever. You will bounce back! It is important that before you rebuild your credit that you take care and practice caution so that you do not end up with overwhelming debts again. To find out more about bankruptcy and what to expect after you file, consult with a bankruptcy lawyer, like a bankruptcy lawyer in Memphis, TN, today.

 

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Thank you to the experts at Darrell Castle & Associates for their input into bankruptcy law.