Credit Card Debt and Bankruptcy
Over 90% of my clients carry some level of credit card debt. It is toxic to your financial freedom once you become saddled with credit card debt loads that interfere with your life as the monthly payment obligation swells.
Credit card debt is dischargeable in both Chapter 13 bankruptcy, and Chapter 7 bankruptcy, and being on time with all of your credit card bill obligations does not do much good if your overall balances have grown to an unsustainable point.
Many of my clients ask me if they will be able to obtain a credit card again if they file for bankruptcy relief. The answer is yes.
Credit card issuers will be flooding your mailbox with solicitations after you receive your bankruptcy discharge. The chief reason this happens is because these credit companies know that an individual who has just filed a bankruptcy is ineligible to file for bankruptcy protection in the future for a period of eight (8) years.
So, while you definitely want to research the particulars on any deal you are contemplating entering into, you will not have a problem re-establishing credit after your bankruptcy discharge.
In today’s world, having a credit card or two for travel and certain other purchases is close to a necessity. You will be able to avail yourself of these credit lines. Actually, this can be an important component of how you rebuild your credit and credit score after your bankruptcy filing.
I will personally tutor you in what steps have proven most effective in boosting your FICO scores on the heels of your liquidation or reorganization bankruptcy discharge. A bankruptcy should provide you and your family relief, not sink you into an untenable credit score position. With the right planning and execution, it is very realistic to gain the credit score you want within 24 months of your bankruptcy discharge.
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