Life After Bankruptcy

As crazy as it may seem, bankruptcy is not the end but a new beginning. We are here to provide you with a game plan to put your financial life back on track.

Obtaining credit can be incredibly easy or extremely difficult. Credit can allow you to take a vacation, drive a luxury car, own your own home, or start your very own business. Almost every person that we have met has wished that they had taken steps sooner. The fact is that our society has shifted into a cashless society. People who have the misfortune of losing their good credit immediately begin to feel like social outcasts. Without good credit, people soon discover it is difficult to just keep up with the everyday items that are needed. Most people do not have the slightest idea of where to begin.

Lenders often evaluate you to determine how much credit, if any, to give you based on the 3 Cs “character, capacity, and capital.” Some lenders use the 5 Cs which include “conditions and collateral”.

Character is “Will you repay” or 1) time at your present/previous address, 2) time at your present/previous job, 3) How many years you have owned your home, 4) references, and 5) credit history.

Capacity is “Can you Repay” or your 1) Income from all verifiable sources and 2) Debt to Income Ratio. This means your monthly income compared to your monthly debts. Some creditors prefer it if no more than a maximum of 36% of your income pays your total “fixed” expenses and no more than 28% of your income pays for “housing.”

We understand that the best source of our future clients will be from your referrals. Therefore, we try to help people after bankruptcy. Below are some examples of what to do after the bankruptcy is filed:

• Once a year, you have the ability to view your credit report, from all 3 credit reporting agencies absolutely free, to all U.S. citizens. To do so, please click here: www.annualcreditreport.com
• Get a Credit Report after your discharge. If there are still mistakes then ask us about how to correct the errors. Disputing your credit report errors is laid out at http://www.ftc.gov/bcp/conline/pubs/credit/crdtdis.htm.
• Update credit bureaus on missing positive information.
• Close any accounts you are not using.
• Clear up incorrect public record information.
• Spouses should establish their own, separate credit history. The Equal Credit Opportunity Act requires that if you have had a joint account, you can request a creditor to report your individual participation and performance on that account separately.
• Ask us for a copy of “Guerrilla Tactics that will give you a good credit rating.”
• As strange as it seems, you will receive numerous offers for credit cards, mortgages, and vehicles after your bankruptcy is filed. Use this new credit wisely.
• Open a checking and savings account.
• Keep current on your mortgage, car, rent, and utility payments.
• Apply for a department store or gas credit card (easier to qualify for) and pay your bills on time.
• Take out a secured credit card.