Althoughbankruptcy might seem like an easy way to erase your debts and start over with your life it also involves many more things that you may not be familiar with. Not only could you lose your home but you will also have bankruptcy stay on your credit report for an average of seven to ten years. Depending on the type of bankruptcy you file for, your credit report could drop by as much as 240 points just after filing.

Once you have filed for bankruptcy you will only be able to get very limited lines of credit, which will generally be limited to credit cards and secured loans. In order to get a credit card you will have to deposit money with the issuer and will, in essence, be charged more to spend your own money. This can amount to an interest rate of 20% or higher, not including any monthly fees that are involved.

However, if you do get a credit card that has a credit builder feature, you can use this to slowly improve your credit rating over time.

Have questions about Chapter 7 or Chapter 13?  Contact us to get answers from a South Texas bankruptcy attorney.