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Bankruptcy Myth 1 : You Will Never Get Credit or Own Anything Again

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by , 11-02-2011 at 09:34 PM (625 Views)
This just simply isnít true.


Most people qualify for new credit cards within months after the successful completion of bankruptcy. When you're looking at your Fort Worth bankruptcy options, there are several to choose from, so it's important to understand that depending on which bankruptcy law firm you use to file, you will likely not get another discharge of your debts for at least 8 years and banks know this. Hiring an experienced law firm will help to avoid problems that come from an inexperienced lawyer just quickly filing your case without giving planning and thought to the future of your situation.


Another thing to consider is what do we really need credit for? Our opinion is that one should only use credit for the purchase of a house or a car. Post-bankruptcy, the use of a credit card should only be for the purpose of improving oneís credit score: use a card for the basics, pay in full every month and never carry a balance. This way your credit shows that you borrow and pay promptly, while the bank cannot charge you interest because you are paying in full every month.


With respect to a car, so long as you have practically any source of income, someone will loan you money for a vehicle. You will likely pay a higher interest rate but over the life of a car loan, that only costs you a few thousand dollars. Compared to the thousands of dollars of debts you are wiping out in a bankruptcy, this should be a non-issue.


Buying a house is a bit trickier. Home lending has gotten tighter during this awful economy and having a higher interest rate over the life of a home loan could cost many thousands of dollars. If you already have a home, we recommend staying there for as long as you can until your credit improves. If you are hoping to buy your first home, you should try to save as much as possible for the down payment. The more money you have to put down, the more likely you will qualify for a decent loan with better terms. You should then check your scores every year and see if you can refinance.
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