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rental history to rebuild credit, San Antonio bankruptcy lawyerWhen a person files for bankruptcy, it takes time for their credit history to “heal” from the painful ordeal of overwhelming debt that caused the bankruptcy filing. As long as person is careful not to overextend themselves, they are usually able to qualify for credit cards, auto loans and even mortgages within several years of filing.

Having taken control of their debt and filing for bankruptcy, a person can also take control of their credit history. Applying for a secured credit card and making the payments on time every month, as well as any other accounts that were not charged off in the bankruptcy, such as a mortgage or auto loan, will increase a person’s credit score enough that they may be able to qualify for unsecured credit within two years following the bankruptcy.

There is now a new way for people to help increase those credit scores and that is with their rental history. In the past, a person’s rental history was never included on credit history reports. If a person has a long history of making on-time rental payments, they never received the credit benefit for that good history like a person who pays their mortgage on-time.

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credit card debt, credit card misconceptions, credit card myths, Credit Report, debt in bankruptcy, debt settlement, San Antonio bankruptcy attorney, Texas bankruptcy attorneyOne of the reasons why people find themselves trapped by debt is because they have a misunderstanding about a few key issues regarding credit card debt. These credit card misconceptions or myths can set an individual up for failure by leading that person to believe he or she can tackle credit card debt easily. For some cases, the only real solution is to wipe out the debt in bankruptcy.

Many people think that any person can get credit card balances cut in half without too much effort. This is not necessarily true because credit card companies screen clients to make sure that the claimed hardship actually meets company-wide understanding requirements. Not every individual is going to be able to slice their debt in half.

Another common myth or credit card misconception is the idea that going through debt settlement will improve your credit situation and cause less damage than bankruptcy. Many debt settlement providers require a lump sum payment. If you are not able to pay it, you could get slammed on your credit score.

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texas bankruptcy lawyerMaybe you are waiting to contact a bankruptcy attorney because you think that the collection calls will stop. Maybe you are feeling overwhelmed and embarrassed by the situation. Rest assured that bankruptcy can happen to anyone and that you should not be afraid to reach out for help. One financial setback like the loss of a job or a serious accident can affect your finances dramatically. Once those phone calls start coming in, however, it can raise some questions about what creditors are and aren’t allowed to do or say when they are contacting you about a debt.

In Texas, your rights are protected under the Texas Debt Collection Act. This law outlines how and when creditors can contact you, but it is also stipulates what is illegal. This law is attempting to cut down on the abusive, unfair, or fraudulent debt collection attempts that have made life frustrating for individuals throughout Texas.

A debt collector cannot try to collect more than the amount that was agreed on, even if the agreement was not in writing. The only way that a debt can be increased is through attorney fees, service fees, collection fees, or investigative fees if these are within a written contract. If you receive notice that a debt collector is coming after you and you dispute the debt, you must do so in writing.

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