Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “Can I get credit after filing personal bankruptcy?”
Credit card companies use a simple formula when they determine whether or not they want you as a customer. Can you pay the debts you are currently paying and add another debt? If they suspect the answer is no, your credit card application could be declined.
Credit card companies determine whether or not they want you as a customer based on information you submit on your credit application as well as information listed on your credit report and other public sources.
If you live on credit, so to speak, you should consider the effects bankruptcy may have on your lifestyle and your ability to maintain and obtain credit. Many people considering bankruptcy or who are just beginning the bankruptcy process question whether they will ever be able to get credit again. They seek credit but, time and again, they are declined.
It’s hard sometimes to see the light at the end of the tunnel, but there is one. As debts are paid down, paid off and discharged, a debtor’s credit—and credit score—recovers. Time, as the saying goes, cures all ills, and the same is true of credit. As your credit delinquencies recede further into the past, your credit present grows brighter—assuming you’re not taking on new debt and pushing yourself into bankruptcy.
And it isn’t necessarily bankruptcy that’s scaring off credit card companies. Even if you haven’t declared bankruptcy, evidence of late payments, accounts referred to collections, judgments and defaulted student loans can negatively impact your credit score and your access to credit. If you have already entered bankruptcy and your credit score is improving, make sure you ask your bankruptcy trustee before taking on new credit obligations. The trustee must agree to the new obligation before you can get it.
Many debtors—both those who have entered bankruptcy and those who have not—have turned to secured credit cards as a way of getting credit. A secured credit card works like a debit card: you put money in, and that’s how much you can take out on the card. However, some card issuers reward good borrowers by adding to their credit line without requiring additional deposits. Other cards allow charges up to a certain percentage above the deposit amount.
As with most, if not all, matters financial, it is buyer beware with secured credit cards. Debt.com Chairman Howard Dvorkin warns that some “completely despicable” companies take advantage of clients who are in messy financial situations. One example cited was card companies who agree to issue a credit card but require users to purchase a $55 monthly insurance policy.
If you are facing what looks like insurmountable debts and need to speak to someone regarding how to formulate an action plan that will help make you financially solvent again, give me a call today to set up an appointment. The skilled lawyers at Arnold & Smith, PLLC are available at (704) 370-2828 or find additional resources here. As professionals who are experienced at handling all kinds of bankruptcy matters, our attorneys will provide you with the best advice for your particular situation.
About the Author
Bryan Stone is a Partner with Arnold & Smith, PLLC, where he focuses his practice on all aspects of bankruptcy, including: Chapter 7, Chapter 11, Chapter 13, home loan modifications and landlord-tenant issues.
A native of Macon, Georgia, Mr. Stone attended the University of Georgia, where he earned a BBA in Banking and Finance, and Wake Forest University School of Law, where he obtained his law degree.
Following law school, Mr. Stone relocated to Charlotte, where he currently serves as Chair of “Bravo!” – a young professionals organization associated with Opera Carolina – and founded the University of Georgia Alumni Association of Charlotte.
In his spare time, Mr. Stone enjoys perfecting his barbeque skills for the annual “Q-City BBQ Championship” and playing softball in the Mecklenburg County Bar softball league.
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