credit after bankruptcy

Do I need credit after bankruptcy?

Many times I am asked do I need credit after bankruptcy?  If you have just filed a Chapter 7  or Chapter 13 bankruptcy due to financial problems with credit, creditors and/or credit cards or overwhelming medical debt you may have said to yourself that you will never no way no how use credit again. Most likely you are now gun shy of banks, credit unions and high pressure lenders and want to move forward on a cash only basis.

You may have even said to yourself that you will never get into the credit game again. I understand and believe me I know where you are coming from. If you are like the vast majority of people wanting to thrive financially after a bankruptcy you will need to establish some kind of credit history. For example if you ever want to take out a loan for school, buy a home, open a credit card so you can rent a car or just about anything that requires borrowing money then a good credit history is essential.

For example if your goal is to buy a home, unless you have cash to pay for it in full when you buy it, you are going to need someone to spot you the money so you can purchase the home. You might have rich parents or a relative willing to loan you the money but this tends to be a rare occurrence. Most of us need to go to a lender (ie, bank, mortgage company or credit union) to get the financial back-up needed to buy a home.

Different kinds of lenders have different rules in place as to how and who they will help buy a home. The one thing they have in common is this: they want to know that you will be able to repay them – thus the need to have a “credit history”. A longer and more positive credit history will make you an attractive borrower and will open doors to more financial and employment opportunities in life.  In my new book Life After Bankruptcy: The game plan to rebuild restore and renew you credit after bankruptcy, I walk you through the steps to rebuild you financial future after bankruptcy.  Currently those who retain my office for their bankruptcy receive a free copy of this new book.  Call us today to see if bankruptcy is right for you.

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