Will I Get Credit after Bankruptcy?

Yes, but you must earn it. We recommend that anyone who has completed their bankruptcy case make timely payments on consumer obligations such as mortgage and car loans. Another way to rebuild your credit is open a savings account and use a fully secured credit card. Be sure to pay the new credit card in full every month.
 
If you make your monthly payments in full and on time and show the lenders that you worked your way back, you will get reasonable and affordable credit again.
 
Consumer Financial Protection Bureau
News reports this week announced that the government is preparing further restrictions on debt collectors. The Fair Debt Collection Practices Act has been around for decades. Unfortunately, it is highly ineffective. The Act regulates some collectors, but certainly not all. It is loosely enforced. In fact, our clients continue to report illegal and abusive collection tactics. The Consumer Financial Protection Bureau is scheduled to issue a notice of its proposed rules. Hopefully, the new regulations will strike a balance between reasonable collection of valid debts and ensuring the privacy and dignity of those who owe money.
 
Student Loans in Collection
The Department of Education announced that it will create new rules to provide protection for students who take out educational loans. The regulations are designed to make it easier for borrowers in trouble to end the payment default and fully service their loans. Reportedly, private debt collectors under contract with the government were failing to offer the legally allowed repayment plans. The new regulations may well mean that the total debt repayment will be kept at 15% of monthly income. At Checkett & Pauly, we see many hard working people who have substantially more student loan debt than they can ever repay. Unfortunately, there are few available options. Hopefully, these new regulations will help borrowers get back on their feet and handle their loans in a reasonable and logical manner.
 
Bankruptcies in Decline
Although bankruptcies increased slightly in September this year, bankruptcy filings have been consistently declining for the last 35 months, not only in Western Missouri, but all over the country. Not surprisingly, no one can really explain the fall in bankruptcy filings. We believe part of the reason is because the economy is getting better and people are going back to work. Additionally, millions of people who filed for bankruptcy after the 2008 crash are ineligible to file for bankruptcy right now, and others no longer need bankruptcy protection. At Checkett & Pauly, we are always happy to see an economy where fewer people need our bankruptcy services.