After filing for bankruptcy in Arizona, you need to beware of credit traps. There are many companies that set out to take advantage of your situation, and many Arizona debt collection agencies will try to trick you into reaffirming a debt. When you receive an offer in the mail, especially if it seems too good to be true, be wary!
Things to Keep an Eye Out for After Filing for Bankruptcy in Arizona
“Disguised” Reaffirmation Agreement
You may get credit offers that give you new credit… but only if some or all of your balance from discharged debt is added to the account. Read the fine print for any agreements that are sent from anyone claiming to represent a lender or own a debt you listed when you filed for bankruptcy in Arizona. It may actually be from an Arizona debt collection company.
“Secured” Credit Card
These cards use your bank deposits as collateral. If you can’t pay up at the end of the month, you lose the money in your account. You may think it sounds like a good idea to reestablish your credit after filing for bankruptcy in Arizona, but almost anyone can get an unsecured credit card offer. Don’t tie up your money.
Credit Repair Companies
You’ve probably seen the commercials – “We erase bad credit” – and after filing for bankruptcy, they may grab your attention. But here’s the deal: no one can erase accurate bad credit information from your report. And if there’s false information, you can fix it yourself for free.
“No credit? No problem!” Sounds great, right? Unfortunately, these loans have high interest rates, as well as extra costs and fees, that can make it impossible to pay back. You can find a better deal elsewhere, and if you can wait a few years, most lenders won’t hold your filing for bankruptcy in Arizona against you if you’ve avoided debt problems since then.