Monday, August 13, 2007

Life after Bankruptcy

How to live and repair finances? Those are the ordinary questions of bankrupts who fear that they will not be able to get a credit or loan any more. But good news is that even if you went through Chapter 7, 11 or 13 of bankruptcy, you may still search for credit cards or a loan.
What do these chapters mean? (Briefly)
Chapter 7 is the basic bankruptcy for the average consumer. Anything he has of value is sold to creditors.
Chapter 11 is for individuals and businesses to alter their finances by paying creditors by means of a reorganization plan.
And chapter 13 is for people who have normal jobs and are able to pay money on their debts. A person can only qualify if he has less than $269,250 in unsecured debt and less than $807,750 in secured debt.
So, even if your credit score was good enough before the bankruptcy, you will be eligible for no more than bad or no credit cards and secured cards. Choose the suitable one!
Note: getting a credit or a loan is not enough. You should respect them and use tactfully in order to prove your credit worthiness. Be patient and diligent! Only then you can rebuild your credit history and juvie.

No comments: