Miami Florida Bankruptcy Blog

A bankruptcy will be on your credit report for up to ten years. More likely than not, if you are filing bankruptcy your credit is already in pretty bad shape. The bankruptcy will actually help your credit in the long run. It will enable you to start with a clean slate and rebuild your credit history.

Typically, you will start to get offers for secured credit cards once your bankruptcy is discharged. In some instances people actually get offers for secured credit cards while they are still in bankruptcy! The key thing to remember is that the use of this post bankruptcy credit will dictate how quickly you rebuild your credit score. It is important to use this credit wisely. Your credit report will indicate that you filed bankruptcy, but just because that is on your report does not necessarily mean you can not get credit.

Secured Credit Cards require you to make a deposit equal to the credit limit of the secured credit card. The interest rates on these credit cards are typically higher than unsecured credit cards, but they are one of the best ways to rebuild your credit. A good rule of thumb for these credit cards is to treat them like you are using cash. If you make purchases during a given period make sure you pay them off. If you run into difficulties paying your balance, stop using the credit card until the balance is paid off.  It is in your best interest to limit the balance you are carrying month to month.  The important thing is that if used responsibly these secured credit cards will help you rebuild your credit.

Over time your responsible use of these secured credit cards will increase your credit score and increase your ability to get additional credit. The most important thing to remember is do not get caught in the credit card trap again. Don’t take out more credit then you are able and willing to pay off in a given time period. It is often better to use cash, as it is typically harder to pay for something in cash than it is with a credit card. Think about the last time you paid $100.00 or more in cash for something, you think about the purchase a lot more than you do when you pull out a credit card to pay for it.

If you have not re-established good credit in 2 to 4 years following your bankruptcy, chances are that it has nothing to do with your bankruptcy. Bankruptcy gives you a fresh start what you do with it is up to you.

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

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