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 » Iowa Bankruptcy and Credit Cards

Iowa Bankruptcy and Credit Cards

What do I do with my credit cards? Can I get one after Bankruptcy? How long will it stay on my credit report?

It may be possible to keep a credit card if you a credit card with a zero balance at the time you file bankruptcy. Keep in mind that anything you charge on a credit card within 90 days of filing bankruptcy may have to be repaid. Bankruptcy will remain on your credit report for ten years, and certain lenders will always be able to determine that you have filed bankruptcy in the past. However, it is possible to obtain credit from certain lenders after filing bankruptcy. Many credit card companies and car dealers do not view bankruptcy as an impediment to obtaining future credit. Your interest rates may be higher, but credit may become available to you in the near future, depending on your income, assets, and debt ratio.

Your credit score will almost always be negatively affected by a bankruptcy filing. If you are attempting to improve your credit score through bankruptcy, or if you are using bankruptcy as a technique to improve your credit score, you are doing so at your own risk. Factors that affect your credit score are numerous and complex. Iowa bankruptcy attorneys do not have specialized knowledge or training to determine which techniques will improve a credit score, other than remaining current on all monthly obligations.

In advising you on your bankruptcy options, we are not taking any steps, or making any recommendations with the goal of improving your credit score. All legal advice and decisions are made to maximize the potency of your bankruptcy proceedings in the form of discharging the most possible debt, and protecting as many exempt assets as possible.

Reaffirmation Agreements

We will offer advice on whether to sign and file reaffirmation agreements. It is presumed that reaffirmation agreements are not in your best interest, solely with regard to your current and future debt obligations. If your creditors do not send you a reaffirmation agreement after receiving notice of your bankruptcy, then it is presumed that they are not requiring one of you. We indicate to all clients that failure to sign a reaffirmation agreement may impair their credit score now and in the future, but will never advise a client to sign a reaffirmation agreement simply for the purpose of improving his credit score. The decision whether or not to sign a reaffirmation agreement will be made based on issues unrelated to your credit score, and any legal advice will be given with complete disregard for the affect on your credit score.

If your primary goal is to improve your credit score, we advise you to avoid filing bankruptcy. It has been the experience of some clients that their credit score improves faster by filing bankruptcy as opposed to not filing bankruptcy, but this is not a guarantee.

Iowa Bankruptcy Lawyer and Debt Relief Attorney

Whether or not to file for bankruptcy is an important decision. Bankruptcy can offer you a fresh start if you find yourself overwhelmed by debt. This can happen for legitimate, and sometimes foreseeable, reasons. For example, people can become financially overextended because of losing a job or having a medical problem. But bankruptcy has many possible consequences for your property assets, for your future ability to get credit, and for the people to whom you owe money. You should discuss all your options with your lawyer before deciding on a course of action.

Are you eligible for bankruptcy? Take our Bankruptcy Eligibility & Means Test Analysis to have an attorney review your situation.
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