Credit card bankruptcy can be devastating; there’s no two ways around it. After years of living on the edge, getting new lines of credit, and just generally pushing everything to the max, sometimes people decide it’s simply not worth it (or not possible) to keep paying the monthly minimums on their cards. At this point they will learn how to file for bankruptcy , having judged it as the best of two not so great options. Believe me, I understand. The lenders are vicious in how they just eat into you with absolutely no regard for your well-being whatsoever. Sometimes I think it would be a ball if we all just decided to default on all our payments to those predators. The only problem with that, as we have seen in this recent recession, is that everything is so intermingled and codependent that they would have to be bailed out lest the whole economy collapse. But still, I do dream of such a revenge.

Anyway, I didn’t mean to get off on a tangent there. The fact is that you are certainly not alone if you are going through a credit card bankruptcy . Sometimes it becomes just simply impossible to generate enough income to pay back the banks. In this case, what should you do? Well, just because you’ve gone bankrupt that doesn’t mean you can’t still get more credit cards. I know several people who received credit cards after bankruptcy in as little as one month from the discharge date. See lenders view you as a low level liability because you simply have no debt. But to cover themselves your limit will be very low usually about $500 or less and interest will be pretty high. Once you establish yourself as a reliable consumer you will slowly gain their trust and your limit will increase gradually.

First of all, you may have to get a secured card, because this is probably the only way anyone is going to lend to you for a while to come. Unless you have just stumbled upon a fortune or are earning a significant amount more than your monthly expenses, no bank will want to take a risk on you. Once bitten, twice shy as they say. A secured loan will need to be backed up by collateral. In this case you deposit money into a savings account and then get a loan for the same amount. This seems kind of counter-intuitive. If you already have the money then why do you need to turn it into credit? The sad fact is that this is basically a gimmick for banks to charge you interest on your own money which you’re actually lending to them! Of course, it could help you to build up your credit score eventually, maybe.

Another option would be to get an unsecured card. This will probably be a lot tougher to achieve for the reasons stated above. Nevertheless, it is a better deal (as long as you can control yourself this time). I strongly suggest that you watch out for super-high interest rates in the 20% and above range. At that point you just have to make the judgment that we all have to make about your own fiscal responsibility and income, etc. In the end, credit card bankruptcy can be a valuable regrouping experience for many of us. We learn some lessons and then we start anew. Remember that this is the whole point of the tool. It is not to wallow in our own failure, which is what we had been doing, but to cleanse ourselves of it and emerge more powerful.

There are a couple things to remember here. One is that bankruptcy help needs to be established first and foremost before you decide on what chapter to file and when. You need to exhaust all possiblities before filing for bankruptcy. Seek a professionals advice on a possible bankruptcy alternative. Once you file it will be on your record forever. The ultimate goal would be to try to eliminate credit card debt without bankruptcy at all costs.They say only 8 or 10 years but thats simply not true. When you go to get a loan one of the questions you will always be asked is have you EVER filed bankruptcy. It is always a red flag no matter when you filed. If you cannot work something out even as much as a Bankruptcy loan then perhaps its time to bite the bullet and take the plunge. It is not the end of the world remember, Donald Trump filed bankruptcy...several times.