Bankruptcy can be in association to the Italian Renaissance Period. Back then, if a merchant debtor were unable pay his debt, then the creditor would destroy his trading bench. This is called Banca Rotta, from this bankruptcy got its name. Of course, back then the penalty was harsh and primitive. But for some people, the penalties and the destruction of their credit can be pretty harsh too.

Nowadays, the Bankruptcy Law is being utilized and followed to give protection to both the debtor and the creditors. All parties generally accept the law. In some way, it takes away the competition aspect and let both parties cooperate for the maximum benefits and satisfaction of their well-being.

It will also give the debtor a second chance in order to rebuild his or her business. As to quote, they say almost all business owners failed a couple of times before they finally made it big.

People most frequently have the misconception that filing for bankruptcy is in many times to be the end of their world. Just because you file for bankruptcy does not mean you will never have to get back on your feet again financially. For a point of fact, the main purpose of filing for a bankruptcy loan is for you to re-establish your life and finances again.

A bankruptcy loan can provide someone the opportunities that he might not have otherwise, for instance the ability of owning a house and automobile or starting up a new business.

Most of the loans are recommended for persons who have declared themselves bankrupt and only after their cases have been discharged and their creditor have been paid.

For Chapter 7 bankruptcy, the person in debt must wait for 2 years after their bankruptcy has been filed for them to apply for a loan. They can apply only after their cases have been dismissed. On the other hand, in Chapter 13, the debtor must first pay in full amount to his creditors, before he can apply for a larger loan.

The only means to reapply for a loan is to prove to your lenders that you are capable enough to pay the loan back and is no longer a high-risk borrower. The most effective way to re-establish your credit is by paying all the bills on the allocated time and retaining your credit card and a good credit rating and report. After doing all these, you can request the credit company to write a letter testifying that you are no longer a risky borrower.

Nevertheless, not all loans are given to people who have spared their life and soul out of the risky and shameful situation. Sometimes, people in debt are tendered with the opportunity of having a loan as a payment alternative they can use to reimburse their creditors, but this is indeed a recipe for disaster.

The last thing a person in debt needs is to have another creditor while they are still buried with liabilities to pay. Truly, a problem would not be a solution to another problem.

In applying for bankruptcy loans, one should be vigilant and cautious enough to read and understand all the terms and conditions made by the company. Also, have the determination to pay all the debts made, keep the budget tight if you want to get out of your tragic financial situation.

Loans can indeed serve as getting a debtor’s life back in order after bankruptcy. Credit, loans, and mortgages can provide the perfect means for a previously bankrupt individual or company to finally re-establish their credit.

Despite the stigma and possible embarrassment of filing for bankruptcy, many people have mitigating circumstances that make it their only option to avoid repeated court proceedings against them.

Additionally, there are some financial companies that have no trouble offering to issue a person a credit card , usually with a higher interest rate and annual fees attached.

One the reasons companies will offer a credit card is the fact that a person cannot file for bankruptcy for at least seven years after the initial action has been discharged.

Knowing this, these credit card companies have a legal recourse in collecting on any unpaid debt resulting from the cards use. While most debt charged on a credit card is considered unsecured, if the cardholder cannot file bankruptcy, the company can use wage attachment to gain repayment.

There are numerous dangers is obtaining a credit card , beyond the usually higher interest rate, as charges for being late with a payment as well as annual fees can quickly put the person into a bad credit risk again.

Many companies offering a credit card offer it as help in rebuilding a credit rating and even with annual fees as well as processing fees, sometimes equaling the initial credit limit, people take them out hoping to get back on their financial feet.

Troubles Can Keep Adding Up

Unfortunately, if the person has a credit , and the initial fees, for example, are $290, and their initial credit limit is $300, being even a day late with the payment will result in a late fee of, on average, $30.

This pushes their liability to $320, causing another $30 to be added as an over the limit fee. The person holding this credit card now has a debt of $350 and they have not used the card at all.

In addition to the new debt, the interest rate on the card can quickly go to the maximum allowed by law because they failed to meet their obligation on the credit card.

They also have no way out except to pay the balance on the card and some companies will make the demand that the balance be paid in full within 30 days or face collection action.

This can include anything from daily phone calls to court proceedings and wage garnishment. Once this happens, getting out of debt from that one credit card can take years to clear up.

It can be hard to get back on your financial feet after bankruptcy. As you start working on rebuilding credit, applying for a credit card will be an important issue. There are many options available for those with a less than perfect credit rating. Finding the right one, however, takes some time and effort. Here are a number of steps to follow to make sure you get the right card after bankruptcy.

Look at your Finances

The first thing to consider is whether or not you’re ready for new card. If you’ve had trouble managing your finances in the past, you may find that it is better to wait awhile before applying. If you feel you’re ready, make sure you have a thorough understanding of your financial situation. Check how much money you earn each month, and what you spend on bills. Knowing what you can handle, in terms of payments, will help you manage your next card wisely.

Compare your Options

While some companies allow consumers to apply for a card fairly quickly after bankruptcy, others do not. And if you have a poor credit history, it may be difficult to get a regular card. You’ll still find many options available for your situation, however.

Rather than applying for a standard card, you might consider applying for a bad credit credit card. These are designed for those that need to rebuild credit. If you search online, you’ll find that there are many to choose from.

Check the Fees

Most cards that are geared for those with a low credit score come with a number of fees. These usually include fees for setting up an account and maintaining it. Some charge high annual fees and have high interest rates, while others do not. Look carefully at the terms and conditions that come with each card. Make sure the one you choose is the right fit for your situation.

Establish Criteria

As you search for the right offer, consider which features are important to you. No two cards are the same, and you’ll find that many vary in terms of interest rates, credit limits, and more. If you want a low interest rate, look for cards that have a relatively low APR for your situation. If you’re concerned about fees, search for bad credit credit cards that charge less in that area.

Ask for Help

With so many options available, picking out a new card may feel overwhelming. And if you’ve had problems with credit in the past, it can be hard to get on the right track. Try asking a friend or financial advisor to help you pick out the right card. Their input might be just what you need to get started again.

Most cards that you’ll be able to get approved for offer you a chance to get started in the credit world after bankruptcy. They are not usually set up for long term use. Rather, you can use them as a building block. Get off to a good start by paying off your balance each month and managing your account well. Soon you’ll have opportunities to apply for other cards. Use those wisely, and you’ll be rolling in the credit world once again.

Having to file for bankruptcy is a scary thing sometimes. It may feel like the end of the world, and you have finally come to your last resort. Perhaps you feel that you could never again have a loan, never again regain the once amazing credit score that you had before everything went down hill, and never be able to buy anything with a credit card again.

These feelings of hopelessness are burdensome, but some weight can be lifted from your shoulders. There are possibilities of having credit cards in the future, therefore being able to build up your credit score, slowly, until it is once again in the high numbers and a secured spot on the chart.

But how is it possible to keep your credit cards once you have filed for bankruptcy? Don’t you have to list them under your debts?

Yes, you do have to list the existing balance on your credit card as a debt when you file for bankruptcy, therefore making that credit card discontinued for further use. Filing bankruptcy gets rid of all your debt, and the balance that exists on your current credit card is categorized as such, therefore giving you no choice.

However, if you have a credit card that does not have a current balance on it, you are allowed to keep that credit card because you are not indebted to that specific credit card company. You do not have to tell that specific credit card company that you have filed for bankruptcy, but they may find out some other way, like by looking at your credit report.

In that case, they may change a few things in the agreement they have with you because of your increased risk of making late payments or making no payments at all. Many credit card companies will keep your line of credit open because they want your business, but they do have the right to change things like your credit limits and interest rates because of something like bankruptcy.

Despite the fact that there is no balance on that credit card, there may be some companies that will discontinue the line of credit they allowed you anyway. Bankruptcy is a red flag to them, and because you are at higher risk, they may invalidate your credit card. However, most companies will not because they still want you to keep an open line of credit with their company.

It is not difficult to get new credit cards after you file for bankruptcy. The fact that you could not pay off your debt may determine a higher interest rate and a lower credit limit, but you still can get a credit card. But if you think about it, the whole point of filing for bankruptcy was to get out of debt and stay out, wasn’t it? Still, it is through more loans and credit cards that you rebuild your credit score after bankruptcy.

If you have a recently discharged bankruptcy, you have probably begun to think about reestablishing your credit. One of the easiest ways to do this is to get an after bankruptcy credit card. We will look at the different types of credit cards that you might select to help you with your credit restoration efforts.

Secured Credit Card

Secured credit cards are the easiest type of card to get because, as the name implies, they are secured by a deposit that you place with the lender. Approval is based on your deposit rather than your credit. For this reason, a secured credit card is also called a guaranteed credit card. You should look for a card with reasonable fees that reports to all three credit bureaus.

Merchandise Cards

Merchandise cards are commonly overlooked in the world of credit repair. For those who are not tempted to overspend or buy junk they do not need, they can be a good tool. Merchandise cards are credit cards that allow you to shop at a specific website or catalog. Make sure you choose a company that reports to the credit bureaus. Just be careful that you shop smart. Some of these type cards offer products that are grossly overpriced.

Unsecured cards for people with bad credit

If your bankruptcy has been discharged for at least six months, chances are you can get an unsecured credit card. What you want to do is look for cards that are specifically for people with bad credit. Three companies that come to mind are Orchard Bank, Capital One and First Premier Bank.

Department store cards

Like merchandise cards, department stores are generally very relaxed with their underwriting guidelines. Why? Since their ultimate goal is to sell you products! You just need to be careful that you don’t overspend. Do not go buy things that you do not’t need. But, if you have the discipline to stay within what you can afford to pay off each month, this can be a great way to establish credit. Gas Cards You are going to spend money on gas anyway, so getting a gas card can be a good way to build up your credit history. Like department store cards and merchandise cards, gas cards generally have very relaxed underwriting guidelines. The gas companies know that if they issue you a card, chances are you are going to choose to buy gas from them!

The key to success in using credit cards to reestablish your credit is to not get in too deep. If you think that you can’t handle it, stay away! You don’t want to end up right back in the same situation of not being able to handle your bills!