Thousands of people file for bankruptcy each year and are able to get back on a positive financial footing. No matter what others think, bankruptcy is actually an essential part of the economic recovery many people have enjoyed in the past decade. At The Law Offices of Paul Y. Lee we work with clients every day who are ready for a fresh start.
Helping them decide between bankruptcy types is just the first step of the process. We are there every step of the way, through filing to discharge. We can also help with some of the most common questions after the bankruptcy is discharged. For example, many people wonder when they should get a credit card post-bankruptcy. Read on to get advice and then contact us at 951-755-1000 for a free bankruptcy consultation.
You must wait for the bankruptcy to be discharged
The right amount of time to wait after your bankruptcy will depend on the type of bankruptcy you filed but one thing is true regardless of the type: You must wait until the bankruptcy has been discharged to try and get a credit card. Why? Because both cards have different waiting periods.
Chapter 7 and credit cards
Generally speaking, a Chapter 7 bankruptcy will be on a person’s credit report for ten years. In some cases it may fall off sooner, and it could take a little longer, but ten years is a good estimate. That said, you do not have to wait a decade after a Chapter 7 bankruptcy to apply for a credit card. You can do so as soon as the discharge is complete. For most Chapter 7 bankruptcies, this will be around three to six months after filing.
Chapter 13 and credit cards
Chapter 13 bankruptcy is a reorganization process in which the debtor repays some or all of their debt over a three- to five-year period. Due to the fact that you cannot apply for a credit card until the bankruptcy is discharged, this means that it will take three to five years for a person to be able to apply for a credit card.
How to get a credit card after a bankruptcy
There are many horror stories out there about how difficult it is to get a credit card after bankruptcy but it may be easier than you think. In some cases, you may be required to take out what’s known as a secured credit card. With this option, you pay money upfront and can then use the credit card with the amount you paid as your limit. This gives the credit company collateral and it gives you a chance to build your credit.
If you are considering bankruptcy but are not sure if it is the right choice – or which type would be best for your needs – then we encourage you to reach out to The Law Offices of Paul Y. Lee at 951-755-1000 for a free bankruptcy consultation.
