When people decide to declare bankruptcy they think that they are going to go into court and tell a judge that he has too much debt and he canâ€™t pay it and the judge will say ok, your bankruptcy is discharged. Well, that has never happened before and it is certainly not going to happen now. The laws as of October 2006 have been changed; it is no longer that easy to have all of your debt disappear. It is very difficult that you will get a Chapter 7 discharge. Courts are cracking down on people who are just simply over spending.
With the new laws, you have to go to credit counseling and then take a means of income test. arWith the changes in the laws, the best thing that would happen is that you file for Chapter 13 bankruptcy which allows the debtor to reorganize a debt to be paid. So you will be paying off the debt. Instead of going through the pain of bankruptcy and the mark on your credit record, you can try to go to a credit counselor your self.
What this does is that it allows you to pay back the debt without declaring bankruptcy. Your credit counselor can make arrangements with your creditors to possibly lessen the amount of debt almost like a settlement and then your monthly payments would be lowered on all of your debts because the credit counselor takes all of your bills and then they would chge you one fee instead of a fee for each creditor. Speak to a counselor and see if you can get a deal that you can afford.
After you have filed for bankruptcy you may begin to establish your credit again. The bankruptcy is on your record for about 10 years, so the quicker you begin reestablishing your credit the better of a position you will be in. One way to reestablish your credit is by getting a secured credit card, these cards you have to pay from the balance of the card in order to get one.
For example, if you apply for a secured card, they may require a down payment from the line of credit extended to you as one time charge. The limits on these cards are very low, so you have to think if that is something you want to do right away. You will owe before you buy anything, but as you make these payments it is reported back to the credit company how you are doing and you could see improvement in your credit score very shortly. Another way to reestablish your credit card is by purchasing a prepaid cell phone, you may think that has nothing to do with credit but most phone services for a small fee like $ 10 a month will sent a report to the credit agencies reporting good credit if you donâ€™t let the phone go over the minutes.
The same thing is offered from those prepay credit cards, the kind you see in CVS and Rite Aid. These things will slowly increase your credit score until someone offers you the first unsecured card and you just have to be careful not to over spend so you can continue the good line of credit.
Oral Nicholson wants to show you how to get your credit back after bankruptcy and will show you proven techniques and statergies to get you out of debt without bankruptcy. For bankruptcy information visit http://www.filing-bankruptcy.info