Bankruptcy Reader

By Priya Jestin, Staff Writer

Obtaining credit after bankruptcy seems to be a big worry with most people who decide to file for bankruptcy. Some people even want to retain their original credit cards after bankruptcy. While the wisdom of this decision is in question, it is something that can definitely be done. Once all your credit cards are listed on the Bankruptcy Petition, you can usually reaffirm a couple of your cards. All you need to do is agree to repay the amount that you owed to that particular creditor.

However, this is not the only and definitely not the best option to obtain credit. Quite a few banks offer secured credit cards nowadays. With a secured card, your credit limit is based on the amount of money you hold in the bank offering the card.

Moreover, you may be surprised to know that once you’ve filed for bankruptcy, creditors will queue up for your account. There are three reasons for this enthusiasm:

• First all of your dischargeable debts get wiped away with bankruptcy,
• Secondly, you now have more disposable income to pay the new debts.
• Finally, once you’ve filed for bankruptcy, you cannot do so again for at least another six years. This means you cannot wipe out your creditors’ debts during this period.