On behalf of Bigge & Rodriguez, PA posted in Credit Card Debt on Friday, May 15, 2015.
It is generally known that individuals who have filed Chapter 7 or 13 Personal Bankruptcies have a harder time getting or rebuilding their credit. However, there are many factors that determine a consumer’s ability to regain credit post-bankruptcy, and the banking and lending institutions play a major role in “Forgive and Forget” credit rebuild.
Bankruptcy consumers are often penalized after a confirmation of a Chapter 7 or 13, with limited access to secured credit, though it may be short-lived and unsecured credit may not be as difficult to attain. Some may have access to some sort of credit within 18 months. Others may not regain the trust of lenders until much longer. Still others may be given very easy credit access despite being considered riskier borrowers – some may even be targeted. Many post-bankruptcy consumers report being bombarded with solicitations from lenders offering lines of revolving credit, even to “riskier” borrowers.
The Credit Cardholders’ Bill of Rights signed by President Obama in 2009 and enacted in 2010 aimed at credit card reform and protection for consumers. In addition to several provisions around payment periods and deadlines, rate increases, and fees on low balance cards, it also aims to eliminate excess marketing, especially to children, but also to riskier consumers.
Another important change is that credit card issuers cannot extend credit, or increase a credit limit, without considering the borrower’s ability to repay the debt. That is where the consumer who has filed or is about to file a Chapter 7 or Chapter 13 bankruptcy will be affected for future credit, though it may only be short term once the ability to repay has been established. That evaluation is as individual as the circumstances for filing bankruptcy in the first place.
For more information on the legislation, see entire bill at
If you or someone you know is considering a Fort Lauderdale Personal Bankruptcy Attorney and needs to learn more about eligibility and post-bankruptcy matters, consult a firm that limits its practice to consumer bankruptcy. Contact Robert J, Bigge, Jr. or Raysa I. Rodriguez at The Law offices of Bigge & Rodriguez, PA for more information. Dial 954-400-7322.