The decision regarding credit issues is with the lender; however, you should be able to rebuild your ability to obtain credit. In fact, a successfully completed bankruptcy will often immediately improve your credit score upon receiving your discharge.

Credit availability depends upon numerous factors. The most important factor is the general economy. If “times are tough”, banks are reluctant to lend. If “times are good”, loans are easier to obtain. If your credit is good, banks will lend to you at a reasonable rate. If your credit is bad, banks will either turn you down or charge an exorbitant interest rate.

After a bankruptcy discharge your credit score will often improve because the lender knows that you cannot file another Chapter 7 case for eight years. This means that a bank’s ability to obtain repayment is greatly improved.

Many lenders also assume that notwithstanding a bankruptcy the loan applicant is a “credit junkie” who will accept a lender’s credit card even at an exorbitant interest rate just for the sake of having that credit card.

Since the 2005 amendments to the Bankruptcy Code, completion of an online or telephonic “Debtor Education” requirement, which among other things addresses proper and improper use of credit, has been required to obtain a bankruptcy discharge.

“Attorney Nagurney” will talk to you about obtaining credit after a bankruptcy discharge; and will explain to you why lenders offering low balance credit cards and loans at absorbent interest rates, and “Pay-Day” lenders should be avoided.