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getting credit after bankruptcy

Date: Thu, 11/18/2010 - 23:56
Submitted by on Thu, 11/18/2010 - 23:56
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Hi! My boyfriend has defaulted on a credit card loan. Actually, he has a overspending habit. He spends money like water. He uses his credit cards often and does not make the payments. As a result he has now this huge debt load. His total loan amount is $50,000. He has no funds to pay back the money. His friends are advising him to file bankruptcy. But he is quite scared to file it. He thinks that he won't get any credit after filing bankruptcy. Is it true? Will he really not get any credit after filing bankruptcy?


If he qualifies for a Chapter 7 then he can be in and out of the system relatively quickly. If he makes too much money to qualify then he will have to file a Chapter 13. Several points:

1. If he has had a large load up on any particular credit card he could be facing a Non-dischargeability Complaint.

2. If he is a habitual credit card user, unless he changes his ways, once he gets his discharge and gets offers for new credit cards he is just going to end up in debt again. He needs to get his spending under control. Warn him that if he continues down the same path he will not be able to file another Chapter 7 for 8 years so he better get his habit under control.

3. His next step is to discuss the bk options with an attorney.

Des.


Submitted by despritfreya on Fri, 11/19/2010 - 05:53

despritfreya

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Believe me, your boy friend won't be hurt if he lives on cash instead of the plastic. After sometime, he can apply for a secured credit card. If he can make regular payments on that card for about a year or so, he will be able to get a credit card.


Submitted by on Fri, 11/19/2010 - 10:18

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