Debt Management Answers For You…

People considering bankruptcy have many questions regarding after bankruptcy credit. Some think that it will be 10 years before they can get credit again, or that they will never get a credit card after their bankruptcy.

Common questions debtors have are usually about keeping current credit cards, establishing new credit and buying a home.

If money is owed on a current credit card, then it must be listed in your bankruptcy forms as a debt. These forms are filed under penalty of perjury and if fraud is detected, your bankruptcy case can be discharged.

Also perjury is a federal crime punishable by a fine and time in prison. Neither circumstance is ideal for someone trying to repair his or her credit. But if nothing is owed on the card, then it does not have to be listed.

But this doesn’t necessarily mean you will get to keep your card. Your company may cancel your account as a precautionary measure.

Credit is now available to the recently bankrupt. Though most will find high restrictions such as lower limits and higher interest rates. There also are credit cards available where you pre-load specific amounts of dollars. When that runs out you simply place more money on the card.

But it is not necessarily a good idea to start up right away with credit cards. Usually it is what gets people into trouble in the first place. It is also important to avoid credit repair scams.

After filing for bankruptcy, many people are afraid they wont be able to buy a home for 10 years while they have a history of bankruptcy on their credit report.

Usually 18-24 months within a bankruptcy discharge, debtors can qualify for a loan on the same terms as if they had not filed for bankruptcy.

Please remember, do your due diligence and determine rules, regulations and fees in your area. Changes are constant.

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