Credit After Bankruptcy
Most people think there is no life after bankruptcy, much less credit. If it�s the first time you have experienced bankruptcy, it is understandable. People tend to feel once they have been declared bankrupt, no creditor will look at them. That no one will have confidence in them anymore to extend credit to them. However, this is not true. You can avail of credit even after bankruptcy.
Once you are declared bankrupt, whatever assets you possess will be used to cover your debts. You will be expected to start afresh as far as your earnings and savings are concerned. But did you know that you can keep your credit card even after you are declared bankrupt?
What this means as far as you are concerned is that you have access to credit through your credit card. It could happen, of course, that your card company could just find out about the bankruptcy and have your card cancelled, the way American Express does to safeguard themselves against bad debts. But many companies let you continue to keep and use your card provided you reaffirm the debt amount and this should be after you do the filing for bankruptcy. So your credit continues and it will, on condition that you take on the original amount of your debt.
Is there any rationale behind this? Creditors, as is understandable, do view b"
Most people think there is no life after bankruptcy, much less credit. If it�s the first time you have experienced bankruptcy, it is understandable. People tend to feel once they have been declared bankrupt, no creditor will look at them. That no one will have confidence in them anymore to extend credit to them. However, this is not true. You can avail of credit even after bankruptcy.
Once you are declared bankrupt, whatever assets you possess will be used to cover your debts. You will be expected to start afresh as far as your earnings and savings are concerned. But did you know that you can keep your credit card even after you are declared bankrupt?
What this means as far as you are concerned is that you have access to credit through your credit card. It could happen, of course, that your card company could just find out about the bankruptcy and have your card cancelled, the way American Express does to safeguard themselves against bad debts. But many companies let you continue to keep and use your card provided you reaffirm the debt amount and this should be after you do the filing for bankruptcy. So your credit continues and it will, on condition that you take on the original amount of your debt.
Is there any rationale behind this? Creditors, as is understandable, do view b"
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