How Do You Obtain Credit After Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy works by liquidating all of the filer’s assets which are considered non exempt. The money from the assets is then distributed to creditors. Certain remaining debts may be discharged. For some people, filing a Chapter 7 bankruptcy allows them a new financial start. One of the most important things to do after a Chapter 7 bankruptcy is to obtain and rebuild credit to improve a credit score. Higher credit scores make it easier to obtain home and car loans. Although it may not always be easy, it is possible to obtain credit after a Chapter 7 bankruptcy. Get a secured credit card. These cards work by putting a specific amount of money into the credit card account upfront. It is a type of collateral. Money is deducted from this upfront amount if you fail to pay your bill. This type of credit card is easy to obtain since there is no risk to the creditor. Apply for a credit card with a low limit. Several credit card companies may give people who have filed a Chapter 7 ba
