Ten Things to Think About Before Using Your Credit Card After Bankruptcy
1. Establish a realistic budget.
Before using a credit card after bankruptcy, try paying cash for a while. This will help you learn how much money you need each month to pay the basic necessities. Don’t forget to budget for the payments on any debts [...]
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10 Things to Think About Before Using Your Credit Card After Bankruptcy
10 Things to Think About Before Getting a New Credit Card After Bankruptcy
Ten Things to Think About Before Getting a New Credit Card After Bankruptcy
1. Don’t apply for a credit card until you are ready.
Unfortunately, bankruptcy may not have permanently resolved all of your financial problems. It is a bad idea to apply for new credit before you can afford it.
2. Avoid accepting too many offers.
There is [...]
What You Can Do to Avoid Problems with Credit After Bankruptcy
What You Can Do to Avoid Problems with Credit After Bankruptcy
* If you don’t want it, don’t get it. If you have doubts about whether you really need the loan or service, or whether you can afford it, don’t let yourself get talked into it by a salesperson using high-pressure tactics. You can always walk [...]
Beware of Rent-to-Own
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
Rent-to-own
By renting a TV, furniture or appliance from a rent-to-own company, you will often pay three or four times more than what it would cost to buy. The company may make even more profit on you because the item you are buying may be previously used and [...]
Beware of Payday Loans, Auto Title Loans
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
Small Loans
It is always best to save some money to cover unexpected expenses so you can avoid borrowing. But if you are in need of a small loan, avoid the following high cost loans:
Payday loans
Some “check cashers” and finance companies offer to take a personal check from [...]
Beware of "Bad Credit, No Problem"
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
Be wary of auto dealers, mortgage brokers and lenders who advertise: “Bankruptcy? Bad Credit? No Credit? No Problem!” They may give you a loan after bankruptcy, but at a very high cost. The extra costs and fees on these loans can make it impossible for you to [...]
Beware of High Cost Predatory Lenders
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
Avoid High Cost Predatory Lenders
Don’t assume that because you filed bankruptcy you will have to get credit on the worst terms. If you can’t get credit on decent terms right after bankruptcy, it may be better to wait. Most lenders will not hold the bankruptcy against you [...]
Beware of Credit Repair Companies
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
Credit Repair Companies
Beware of companies that claim: “We can erase bad credit.” These companies rarely offer valuable services for what they charge, and are often an outright scam. The truth is that no one can erase bad credit information from your report if it is accurate. And [...]
Beware of "Secured" Credit Card Offers
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
“Secured” Credit Card
Another type of credit marketed to recent bankruptcy filers as a good way to reestablish credit involves “secured” credit cards. These are cards where the balances are secured by a bank deposit. The card allows you a credit limit up to the amount you have [...]
Beware of “Disguised” Reaffirmation Agreement
Beware of Credit Offers Aimed at Recent Bankruptcy Filers
“Disguised” Reaffirmation Agreement
Carefully read any credit card or other credit offer from a company that claims to represent a lender you listed in your bankruptcy or own a debt you discharged. This may be from a debt collection company that is trying to trick you into reaffirming [...]
Should I Reaffirm Department Store Credit Cards?
Some department store credit cards may be secured. The things you buy with the credit card may be collateral. The store might tell you that they will repossess what you bought, such as a TV, washer, or sofa, if you do not reaffirm the debt. Most of the time, stores will not repossess used merchandise. [...]
Should I Reaffirm Credit Cards?
It is almost never a good idea to reaffirm a credit card. Reaffirming means you will pay bills that your bankruptcy would normally wipe out. That can be a very high price to pay for the convenience of a credit card. Try paying cash. Then in a few years, you can probably get a new [...]
Do I Have to Reaffirm Car Loans, Home Mortgages?
If you are behind on a car loan or a home mortgage and you can afford to catch up, you can reaffirm and possibly keep your car or home. If the lender agrees to give you the time you need to get caught up on a default, this may be a good reason to reaffirm. [...]
Do I Have Other Options for Secured Debts Other than Reaffirmation?
You may be able to keep the collateral on a secured debt by paying the creditor in a lump sum the amount the item is worth rather than what you owe on the loan. This is your right under the bankruptcy law to “redeem” the collateral.
Redeeming collateral can save you hundreds of dollars. Because furniture, [...]
Should I Reaffirm a Debt?
If you are thinking about reaffirming, the first question should always be whether you can afford the monthly payments. Reaffirming any debt means that you are agreeing to make the payments every month, and to face the consequences if you don’t. The reaffirmation agreement must include information about your income and expenses and your signed [...]
Do I Have to Reaffirm the Same Terms?
No. A reaffirmation is a new contract between you and the lender. You should try to get the creditor to agree to better terms such as a lower monthly payment or interest rate. You can also try to negotiate a reduction in the amount you owe. The lender may refuse but it is always worth [...]
Beware of Tax Refund Loans
Tax refund anticipation loans
Some tax return preparers offer to provide an “instant” tax refund by arranging for loans based on the expected refund. The loan is for a very short period of time between when the return is filed and when you would expect to get your refund. Like other short-term loans, the fees may [...]
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Jill Michaux & Mark Neis
Attorneys at Law
Bankruptcy Law Office
Neis & Michaux, P.A.
825 Bank of America Tower
534 S. Kansas Ave., Ste. 825
Topeka, KS 66603-3446
T: 785-354-1471
F: 785-354-1170
lawyers@neismichaux.com
Board Certified in
Consumer Bankruptcy Law
by the American Board of
Certification