Some people are reluctant to file for bankruptcy even when they know they should because they think everyone is going to know about it. They’ve also heard that people get a lot of mailings after filing for bankruptcy with all kind of offers from debt relief programs to credit card offers to various kinds of loans they can get in spite of their bankruptcy. This article will explain why you receive so many mailings after filing bankruptcy and also explain who is likely to know about your filing and why.
Filing Bankruptcy is a Matter of Public Record
The first thing you should know is that because filing bankruptcy is a federal court proceeding, the information about your case is matter of public record and in the public domain. But just because that’s true doesn’t mean everyone will know about your case. The information about your bankruptcy filing is entered into a system called PACER (Public Access to Court Electronic Records), which is an electronic database of case and docket information from the United States district courts, United States courts of appeals, and United States bankruptcy courts. However, using PACER requires the user to register, get a password, and also pay 8 cents for each document viewed. In other words, your friends and neighbors are not using PACER to find out who in their community has filed for bankruptcy. Very few regular people will know about your case.
That said, there are still a few smaller towns where local bankruptcy filings are published in the newspaper or online, but these are really few and far between. If you’re concerned about this, ask a local bankruptcy attorney and they should be able to tell you whether or not this happens in your area. In any larger city, it won’t happen because it would be way too much to publish on a regular basis.
What About All Those Mailings You Get After Filing Bankruptcy?
There are people and companies for whom it makes sense to have PACER accounts and shell out the money for large amounts of records. And this is the source of all those mailings you get after filing bankruptcy. There are companies who will pay the money to access bankruptcy records in their area because they offer services of some kind tailored to bankruptcy filers. These can include debt relief or debt consolidation programs (some of which are either not a good idea or are outright scams) while others are offers of credit or loans you can get in spite of your bankruptcy. It’s easy to dismiss all of this as junk mail and just toss it in the recycling bin, but you should take a closer look at them because there could be some good offers in there. After all, one of the things you should be thinking about during and after your bankruptcy is rebuilding your credit, and getting a new line of credit and making on-time payments is one way to do that.
For example, Day One Credit uses PACER for access to mailing addresses of people who have filed for bankruptcy. Few things can feel as stressful as filing bankruptcy and then discovering you need to replace your car, and fast. Unfortunately, many people think their bankruptcy prevents them from getting the car loan they need. Not true! But to let people know they can find a bankruptcy car loan to buy the car they need, Day One is willing to pay a small amount to reach potential customers in need. This is a good reason to take a closer look at some of those mailings before you recycle them. The right offer could be waiting for you to help you rebuild your credit.
What About Credit Card Offers?
Some of those mailings will be for credit card offers, which some people find confusing. This is especially true when their bankruptcy includes a credit card overdue balance with a company that is also sending them a post-bankruptcy credit card offer. What gives? This is just a case of the left hand not knowing what the right hand is doing. Your overdue credit card balance in your bankruptcy has probably been sitting in the collections department of the card company for some time. Meanwhile, a whole other department is responsible for getting credit card offers out to as many people as possible.
With these credit card offers, you’re not necessarily being targeted because of your bankruptcy, but you might be. Those credit card mailings go out to a lot of people and they cast a very wide net, so chances are they don’t even know you filed. And it will be a whole different set of people who evaluate your creditworthiness if you apply, so there’s no guarantee you’re going to be accepted. Offers to just apply usually mean they haven’t even peeked at your credit report, whereas offers that mention preapproval tend to indicate they’ve looked at something that makes them think you’ll probably be accepted. But if they do take a closer look and see a bankruptcy or a low credit score, they might still approve you, but at a much higher interest rate than the original offer (if there was one).
One way to restore your credit without as much risk as an unsecured card that might be hard to get is to opt instead for a secured credit card. You save up however much money you want for a credit limit and deposit it with the company who issues you the secured credit card. If you fail to make a payment on your balance, the company already has the cash on hand to cover it. But if you want this to help rebuild your credit, you’ll pay off the balance each and every month on time.
Rebuild Your Credit with a Bankruptcy Car Loan
There’s a kind of catch 22 concerning credit scores and debt and bankruptcy. You declare bankruptcy because your debts have gotten out of hand for whatever reason and you need to make a fresh start. Your credit may be seriously damaged through this process, so you want to improve your credit score to make sure your options are open for future needs like applying for a mortgage or getting a car loan. But the only way to improve your credit score is by having credit that you use responsibly. After getting rid of a bunch of debt, it feels like the last thing you want to do is take on any new debt, but that’s one of the few ways you can actively rebuild your credit!
One way to do this is by working with Day One to find a bankruptcy car loan. We encourage our customers to purchase high-quality newer used cars with low mileage in order to get the most bang for the buck. When you use our fast online application we send it out to multiple lenders in our network who specialize in helping bankruptcy filers get the car loan they need. We get their offers and then select the best one to present to you – all within a matter of minutes! We’ve been doing this for years and have a long history of getting great results that our customers love, along with customer service that treats you like a VIP. Got questions? Contact us to get answers!
At Day One Credit we are experts at finding the best possible bankruptcy car loans in order to help our customers purchase high-quality used cars. We are not lawyers, we do not give legal advice, and nothing we say should be taken as legal advice. Your first step in anything related to bankruptcy should always be seeking the advice and counsel of a qualified bankruptcy attorney.