Bank finance articles and tips

It seems like the ultimate irony: the more broke you are, the more likely it is that you'll declare bankruptcy - and the more likely that you'll stay broke in the foreseeable future.

Even after declaring bankruptcy, there always seems to be one expense after the other that eats up your income. So when it appears that the financial cards are against you, what's a fed-up individual like yourself to do?

Declaring a Chapter 7 or Chapter 13 bankruptcy is a great financial option for those struggling with crippling debt - but there may be a few questions that you're asking yourself: what exactly happens to your credit score when you declare bankruptcy? How will your credit be affected once your bankruptcy is confirmed? What should you do in order to take advantage of the second chance that bankruptcy gives you?

Luckily, the Fair Credit Reporting Act (FCRA) is there to help curious consumers to shift through any credit confusion. Passed in 1970, the Fair Credit Reporting Act is a law enforced by the Federal Trade Commission that protects the basic rights of credit consumers in the United States. While the FCRA was established to put an end to extreme harassment from creditors and debt collectors, this act also allows consumers to receive one free credit report per year in order to check for any reporting errors that may cause a person's credit score to be lower than usual.

Declaring personal bankruptcy is one of the smartest financial moves that you can make after struggling with crippling debt. Your credit score has long been suffering thanks to your battle with debt - and a Chapter 7 or Chapter 13 bankruptcy can put an end to that battle.

However, what about your credit after a personal bankruptcy? With so many financial experts claiming different "facts" about what happens to your credit - and what you should and shouldn't do about it - it can cause much confusion for those looking to take advantage of the second chance that bankruptcy affords. After all, there are many questions that need answers: should you forgo having credit after declaring bankruptcy? Should you stick to a "cash only" lifestyle?