BANKRUPTCY MYTH:

IF I FILE BANKRUPTCY IN ARIZONA, I WILL NEVER GET CREDIT AGAIN

A person can get credit after filing bankruptcy This, of course, is a False statement.  Filing bankruptcy does not make future credit unobtainable.
Actually, the truth is that most of our clients who file for bankruptcy protection find it easier to get credit after filing for bankruptcy.
 
One of the many benefits of filing for chapter 7 or chapter 13 bankruptcy is that once you have filed for bankruptcy protection, your debt is eliminated or at least better managed. Because you have filed bankruptcy and potential credit card companies and lenders know it, offers for new credit will come to you shortly after filing BK.  The reason for the interest of these lenders is that they know you won’t be able to file bankruptcy on them again for 8 years in a ch 7.
 
Initially, the offers you receive will likely be initially subjected to higher interest rates and down payments.  A word of quick caution from our bankruptcy attorneys is a reminder that chances are extended credit was at least partially responsible for you having to declare bankruptcy.
 

Are Credit Cards a Good Way to Build Credit After Bankruptcy?

 
YES, getting a credit card after filing for bankruptcy is one of the best ways to get your credit back on track.  Of course, you will need to make timely payments and stay current on your bills, just like you did before filing for BK protection. 
There are many types of credit cards out there so do please educate yourself before jumping into any old card.  Additionally, even with a bankruptcy filing on your credit record, there are options for even the most checkered credit histories.  Many of these cards may require an upfront security deposit or a higher interest rate.  However, if you use them and pay them off like a regular card, it will both raise your credit score and open the doors to even more credit.
Similarly, there are other options to bolster your credit available.  Certain loans such as a “Credit Builder Loan” are also helpful to increase your credit score after filing for bankruptcy protection.  Also, like secured credit cards, Credit Builder Loans are way easier to obtain because the lender is protected as they will get paid regardless as often these are collateralized debts.

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