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Many experts advise that if you need a new car to get it before you apply for bankruptcy and keep your payments up. You’ll have a lower interest rate and will be on your way to re-establishing credit.
You might only qualify for a secured credit card at first. You will have to make a deposit of several hundred dollars with a bank, which will then grant you a line of credit in
same amount. If you handle this card correctly,
card will be converted into a regular unsecured card in a year or so. Make sure
lender is making periodic reports about your good behavior to
credit bureaus.
Don’t use more than 20 – 25% of your available credit, even if it’s only $500. Pay your bills on time. If you act responsibly, in a few years you will be able to loans and mortgages at rates only slightly higher than prime borrowers get.
If you need to rent an apartment, you might have more difficulty. Landlords who check your credit report might not rent to you at all. Your auto insurance premium will likely rise and you might have difficulty getting a new job. These are some of
downsides of going bankrupt.
Everything is not all brightness and light, but
few sacrifices you will face might be worth
removal of
emotional and financial pain you are suffering every day you struggle with a load of unpayable debt.

Chris Cooper is a retired attorney who has spent several periods of his life deep in debt. At http://www.credit-yourself.com he tries to pass on some of the knowledge he picked up in his journey to become debt free.