Denise Brown Bankruptcy Law Blog on Lawyers.com

What to Do After Filing Bankruptcy

Friday, November 20, 2009 by Denise Brown

Some people believe that after you have filed for bankruptcy that you need to start over from scratch. This is not necessarily true, but the path back to financial health can be bumpy, rough, and long.

Credit Cards

You will only be allowed to keep any credit cards that have a zero balance before you filed for bankruptcy. Though you will be able to apply for new credit cards after your bankruptcy discharge is complete, the new credit cards will come at a price. Most likely your line of credit will be much smaller than before you filed for bankruptcy. Your percentage rate for unpaid balances will be much higher as well. There is no guarantee that you will get any new credit cards at all.

Loans and Lines of Credit

After filing for bankruptcy, you may have a very difficult time of getting a mortgage or any other type of loan. In some cases, you may only be able to get a loan if you have a good down payment.

However, there are loans known as bankruptcy loans. Their purpose is to help those who have filed for bankruptcy start over and improve their financial status. If you have filed for a Chapter13 bankruptcy in Louisville, you will not be allowed to apply for the loan until your creditors have been repaid. For those who have filed for a Louisville Chapter 7 bankruptcy, you will need to wait for a period of two years after your bankruptcy before you can apply for the loan.

Other Areas

Bankruptcy does not only affect lines of credit. You will have a hard time getting life insurance or car insurance. Some employers have terminated people for declaring bankruptcy because they feel the employee does not have self-discipline or restraint, which are negative characteristics.

It is important to remember that a bankruptcy will remain on your credit report for at least 10 years. You also cannot apply for bankruptcy again for another seven years after your previous bankruptcy. Therefore, you need to utilize the lessons from your credit counseling class to ensure you do not make the same mistakes that led you to a bankruptcy in the first place.

This article has been provided by:

Denise Brown’s Legal Direction, Louisville Bankruptcy Attorneys
327 Guthrie St.
Louisville, KY 40202

Posted at 14:20 PM

Topic: Bankruptcy