Most people seeking Bankruptcy protection are not those who are looking for a way out after a spending spree.
On the contrary, the majority looking for assistance find themselves in a situation simply because “life happens.” Circumstances beyond their control, such as a divorce, illness, or job loss, hinders their ability to pay their bills which in turn brings them to my door. It is in these instances that Bankruptcy is a great tool to get a fresh financial start.
So often clients say they are never getting a credit card again, but in order to improve your credit score so you can obtain a car loan or mortgage in the future, you will need to use a credit card to rebuild your credit history.
However, I always caution clients, as it relates to getting credit after the Bankruptcy filing, to remember the goal is to rebuild your credit...not to repeat the damage. Therefore, I recommend obtaining a credit card shortly after your Bankruptcy has been discharged and to use this card for small purchases to be paid in full every month.
By using and paying off your debt, you will demonstrate your ability to be a responsible borrower, and this will help you rebuild your credit!