Diamond Speaks His Mind on Bankruptcy and Related Topics

Copies Vs. Originals at Your Bankruptcy's 341 Meeting

Required by law, the first request that a trustee for a Chapter 7 or a Chapter 13 bankruptcy makes of a debtor is to see his driver's license and social security card in order to establish the identity of the debtor.  The trustee is fulfilling his obligation to identify the debtor by seeing an original driver's license, because it has a picture of the debtor and then matches the social security number against the name on the card and then compares the same against the bankruptcy paperwork.  There are, of course, other forms of identification that will work just as well such as a military identification card.  What will not work is a copy of any of the items mentioned, they must be originals.

If a debtor does not have these items with him/her, at least in El Paso TX, is that, in a Chapter 13 bankruptcy case, the meeting is continued to a later date, which means you have to take another day off of work and in the case of the Chapter 7 bankruptcy you must bring the originals by the Trustee's office within several days after your 341 Meeting, not as bad as having the meeting continued, but still inconvenient.  This may seem petty, still copies vs. originals will delay your bankruptcy moving forward.

Credit After Bankruptcy?

 My general rule of thumb is a person will be able to obtain a credit card on reasonable terms after two (2) years of your bankruptcy discharge.  Now you can acquire an FHA loan to buy a house after two (2) years from your bankruptcy discharge. Take time in choosing your new credit card and mortgage because terms and conditions vary from company to company.  FICO scores are important to some while others value how long it's been since you were past due on any obligation.

Here are a few simple rules to follow to restore your credit:

• 1. Obtain a copy of your credit report within 90 days after your bankruptcy has been discharged. Make sure that all discharged debts have been removed from your credit report. If you don't want to do the required leg work - contact your bankruptcy attorney.
• 2. Be sure to keep your current debts (obligations) current and paid on time.
• 3. Start a savings program so that you can have a down payment available when you are ready to purchase a house.
• 4. New credit card charges should be paid in full each month.

These simple rules will allow you to improve your FICO score, prove you are responsible in paying your obligations, as well as demonstrate you are fiscally responsible by keeping your obligations low and finally have the ability to make a reasonable down payment on a house.

So, you can have credit cards and qualify for a mortgage to buy a house after discharged from your BANKRUPTCY.