If you have a recently discharged bankruptcy and want to begin reestablishing your credit then you will want to read on. We will be looking at everything you need to know about getting credit cards after a bankruptcy.

Make sure your credit report is accurate

You may think that reviewing your credit right after a bankruptcy discharge is not that important. This is not the case! Creditors routinely misreport accounts that have been included in a bankruptcy. Instead of reporting them as included in the bankruptcy and discharged, they report them as being open and currently past due. This lowers your FICO score and makes it hard to get new credit.

You will need to dispute any accounts that are not reporting accurately with each of the three major credit bureaus. Once this is corrected, it’s time to start shopping!

Shop wisely

If your bankruptcy discharge is recent, you will want to shop for a secured credit card. If you are at least six months out from your bankruptcy discharge, you may want to consider applying for an unsecured card for people with bad credit. If you decide to try to get an unsecured credit card, you may want to look for a company that offers both secured and unsecured cards. That way if you can’t get an unsecured card, you can still get the secured card.

Make sure you select a card that does not carry exorbitant fees. Don’t fall into the trap of assuming that you should be happy than anyone will do business with you and accepting the first card you find. There are many vulture companies out there that charge fees that are almost equal to your entire credit line. This is not what you want! Look for a card that does not have an application fee and whose annual fee is $45 or less.

It is critical that you make sure that any credit card that you select reports to all three of the credit bureaus. Most credit card companies report to all credit bureaus, but you will want to verify this up front!

Credit cards that offer an automatic credit line increase after a set number of payments are also something you should look for. These type of programs can help you build up your credit history without having to remember to call and request credit line increases.

A commonly asked question today is, what exactly comprises bankruptcy law? This question can not be answered in one sentence. But if we were to simplify matters, then we would say that it is that branch of the law that concerns those people who have had to face financial failure. This occurs when he or she is officially not able to pay off the money that he or she owes, for whatever reason. Even though this may be asked for by those want payment, at least in part, of what is owed to them by someone who has fallen on hard times.

More often than not, the person who is facing financial ruin files for bankruptcy.

Now, what these laws deal with is settle the debts with those who are owed money, often a small part of the total owed. It also gives the non-payer a second chance since the law frees him of most of the debt that is to be paid. How exactly is this achieved? Well the answer is simple – this is where the distribution of the “non-exempt” assets comes into play. Also, the person going into bankruptcy does not have any control over his available funds.

During the course of the whole action, the person who is in debt is also shielded from further collection action by disallowing the creditors to sue or attempt to collect the entire debt.

However, many often pretend to be in a bad way just to escape paying off the money that is owed, even though one has the means to do so. Another deception would be receiving goods that one has no intention of paying for. Many use loopholes to get their business done that cannot always be declared as illegal but are not exactly legal or ethically right. This is similar to tactical bankruptcy which is used for an individual’s own benefits and which is not against the law specifically, but can prove to be dangerous. Today, people face financial devastation more often than in earlier years. Companies do not make the grade, so they file for bankruptcy. Sometimes these cases are categorized.

Today, however, they are not treated in a different manner. They are not made to undergo intense scrutiny in one area when the reason of the bankruptcy is in a different area. This only results in a waste of time for both the parties.

While no one likes to think about the subject of bankruptcy, the fact is that more and more people these days are finding themselves contemplating filing bankruptcy. It is not hard to understand why bankruptcy filings are on the rise. The levels of debt are rising faster than are incomes, and more and more people are finding themselves at a loss and wondering what to do.

While bankruptcy can seem like the best way to get off to a clean start, it is important to thoroughly consider all other options before taking the serious step of filing bankruptcy. For one thing, a bankruptcy filing will follow you for years, and it may be difficult for those who have filed bankruptcy to obtain loans, lines of credit or mortgages until the bankruptcy is off their record.

Another reason to seriously consider alternatives to bankruptcy is the fact that the bankruptcy laws have recently changed. The bankruptcy filing system, and the rules associated with filing bankruptcy, have recently undergone a total overhaul, and this means that many debtors will be required to pay back a larger percentage of what they owe when filing bankruptcy.

The rules associated with bankruptcy are largely determined by the annual income of the bankruptcy filer. Those debtors whose incomes are higher than the average for their state may find themselves required to pay back more of the money they owe in a bankruptcy filing, so it is important for those in such a situation to consult with a qualified bankruptcy attorney before making a move.

Of course for many people filing bankruptcy is unavoidable, and for many people this last resort is truly a fresh start and a new lease on life. The key is to thoroughly research the bankruptcy laws for your state, and to thoroughly understand the rules that may apply to your situation. The bankruptcy laws vary quite a bit from state to state. In some states bankruptcy filers can keep a great deal of personal property and real estate, while in other states they are entitled to keep next to nothing. It is important to know where you stand before filing bankruptcy.

The purpose of these new bankruptcy laws, of course, is to cut down on past abuses of the system, and there is no doubt that these abuses have occurred from time to time. For honest people in debt, however, these laws may have some serious impacts. It is important for every consumer to become educated in just what these law changes will ultimately mean.

If you are in a situation where you are simply unable to pay off your outstanding debts and even with significant changes to your expenditures you will be unable to pay them in the foreseeable future, then the chances are that you really should think about declaring yourself bankrupt. However, many people even knowing that this is the best move for them are put off by the cost of declaring bankruptcy. Some are completely unaware of the cost of declaring bankruptcy but just assume it to be higher than it actually is.

The court fees are relatively small. Chapter 7 bankruptcy incurs a fee of $274 and Chapter 13 bankruptcy incurs a fee of $189. Now, this might seem a fairly hefty fee for someone who has pretty much nothing, but consider the fact that bankruptcy can secure your long term financial freedom and this is pretty good!

But of course, the true cost of declaring bankruptcy comes in the form of legal fees. The changes to the bankruptcy code passed by Congress in 2005 meant that the process is now more complicated than ever. In fact the bankruptcy laws in the USA are now even notoriously complicated to legal professionals, so you can imagine how difficult that would be for a non-professional. This is why lawyers are absolutely essential in this process and the added complications means that their fees can be higher than they would have been before 2005. However, bear in mind that, if successful, much of your other outstanding debt could potentially be discharged, making the legal fees you incur much more manageable. Bankruptcy attorneys are also usually quite happy to arrange a manageable repayment plan with you as they are absolutely used to dealing with client in the same sort of financial difficulty as you are experiencing.

If you are thinking of Declaring Yourself Bankruptcy then you need the right information before you make that important decision. Find out about Cost Of Declaring Bankruptcy before you proceed.

Unless you are a lawyer, the odds are that you have not spent much time studying bankruptcy laws. If you are someone who is experiencing financial trouble personally or with your business and you find yourself in unmanageable debt, then you need to find out more about bankruptcy and ways to avoid it if possible.

At first, bankruptcy may seem like an attractive option. The goal of US bankruptcy provisions was to help the individual in debt be released from these obligations so that he can start over completely. The creditors are paid immediately but only as much as what the bankruptcy court can make after selling all the debtor’s non-exempt property and goods. Therefore, the creditors get money right away but, in all likelihood, they will not be repaid in full. Once you file for bankruptcy, you are absolved of your debts and your creditors can no longer harass you or sue you for the money. This reason is why many creditors would prefer you do not file bankruptcy in the first place, they want to receive their money back in full even if it does take longer than was originally agreed upon.

Even though Chapter 7 bankruptcy absolves your debt and allows you to start over, you are starting over with almost nothing. All of your non-exempt assets have been sold off and you have most likely lost many friends who trusted you with their hard-earned money. Your credit score also collapses. Depending on the state in which you live, the fact that you filed for bankruptcy will show up on your credit report for at least ten years if not longer. It is very difficult to start over again when you have no funds and cannot borrow money without incurring very large interest rates.

Therefore, you want to avoid filing for bankruptcy at all costs. If you feel as though you are sinking deeper and deeper into debt, you need to talk to a financial expert. They might be able to help you negotiate new contracts with your creditors so that they receive their payments in full and you can avoid the liquidation of all your assets.