Ask Me Help Desk - Credit after Bankrputcy

My wife and I have had our financial life ruined over the past 2 years. We lost jobs, houses, and our good credit.

In fact we had two foreclosures and will soon file a Chap. 7 Bankruptcy.

I'm looking for any good or proven ways to rebuild our credit after we file...

Thanks!

John:confused:

The only thing I know is to use responsible credit habits
Paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.
It is hard to even find a job when you have bad credit even if you don't apply for bankruptcy because many companies check your credit when you apply for jobs so it is a real uphill battle.

There is only one good thing comes out of bankruptcy that makes you appreciate cold hard cash, for a certain period you can't have a credit card, or borrow money, but you can have a car on loan. That is about all that they allow because they can't exactly take livelihood away.

Don't worry about it, johnnyv22, you will breath a lot easier, I assure you, when you get all the debt off your chest. You will get your credit back in time.

Quote:

Originally Posted by tickle

There is only one good thing comes out of bankruptcy that makes you appreciate cold hard cash, for a certain period of time you can't have a credit card, or borrow money, but you can have a car on loan. That is about all that they allow because they can't exactly take livelihood away.

Dont worry about it, johnnyv22, you will breath a lot easier, I assure you, when you get all the debt off your chest. You will get your credit back in time.

Thanks! Hope it comes soon..

Johnnyv22

First why do you wish to rebuild credit, that is what got you into this mess.

First of course the bankrutpcy is going to show for 10 years, so it is just a time thing, you can get a secured credit card and pay it off every month, no balance, you can put money into a bank account and use it for a bank loan that you pay back. Those help, but mainly time.

Don't take this the wrong way, but what would you say to an alcoholic that just got out of rehab and want your advice on how to learn to drink responsibly? They can't do it, so there is only one answer... don't drink. Many people / couples simply CAN'T handle a growing debt ball, no matter how hard they try. Not doing it is the only solution that works.

America is slanted against you in this regard. Everyone ad, product, company, EVERYONE wants you in debt to them so they can have a permanent piece of your paycheck. That's why you A) never build any wealth and B) always feel like you're slipping backwards.

I once checked my Chevron balance and realized I was $500 in debt for GAS! Oh my. We decided to eliminate all credit cards and debt (except for the mortgage) and it took 2.5 years, but we did it.

Now, we plan everything and have absolute control over where our money goes every month. It's an amazing feeling. Our marriage is stronger than ever as a result. Most money disagreements are simply gone.

If you've declared bankruptcy, then you've effectively short-cutted your way to the same place we were.

The only thing you need a good credit rating for is to get more credit, which will lead to more credit. OMG! None of these offers are for your benefit, regardless of how they're worded.

I'll be happy to offer help on any specific financial goal you wish to accomplish and show you how it can be done withOUT credit. Our grandparents knew how to live on less than they made each month and still do all the things they wanted. It's a skill Americans have to relearn.