Quite a few people that I consult with believe that once they file a bankruptcy case, that’s it, they will never be able to use credit again, or that it will be 7 years or 10 years before they will be able to obtain a mortgage, or another mortgage, if they have lost a house in connection with the bankruptcy.

This is not necessarily the case! If you pay your bills on time after filing bankruptcy, I have had a number of clients whose credit score has gone from a low of 400-500 to 650+ after one year, and into the 700′s after two years. But you must pay any debts that you still have after the bankruptcy, like your car or house note, and any new debt, on time. And you must use credit responsibly, etc. etc.

But exactly how do you do it? The best resource that I can offer you is a series of new guides by Stephen Snyder. He went through bankruptcy, and re-established his credit in 8 months. He is an author that has real-life experience.

He offers such books as How to Get Credit During & After Your Chapter 13 Bankruptcy, Renter to Homeowner in 60 Days, How I Raised My Credit Score 153 Points in 8 Days, How to Get Approved for a Mortgage After Bankruptcy, The 18 Easiest Credit Cards to Get After Bankruptcy, How to Get Approved for a New or Used Car After Bankruptcy, and Increase Your Credit Scores- Improve Your Lifestyle. He also offers a free email newsletter. For more information about his books, go to .

I have read a number of Mr. Snyder’s titles, and they are good, accurate and commonsense advice about using credit and improving your credit standing.

If you have Mr. Snyder’s original book, Credit After Bankruptcy, the rules have changed now; you should not rely on advice given in the old book.

Remember if you are in Chapter 13 now, you must get permission from your Chapter 13 Trustee to apply for credit. If you need to apply for credit, call or email my office for an application form. It must be for a necessary purchase, such as a car to get to work, etc.

Take the first step in faith. You don’t have to see the whole staircase, just take the first step.
-Martin Luther King Jr.

Don’t go around saying the world owes you a living. The world owes you nothing. It was here first.
-Mark Twain

New Credit Card Rules Go Into Effect

First Part of Rules in Effect Now, Rest Start in February

Beginning Aug. 20, credit card issuers now have to give consumers more notice before raising interest rates or hiking fees. Before changes can go into effect, they have to give cardholders 45 days’ notice. The new laws also make it more difficult for cardholders to incur late payment fees, as all bills must be sent to consumers at least 21 days before payments are due.

Also going into effect in February are new payment allocation rules, restrictions on marketing to college students, and restrictions on raising interest rates. Beginning in February, issuers will have to apply payments above the minimum to the balance with the highest rate, instead of the lowest as they have been permitted to do in the past.

But the down side is, many credit issuers are re-evaluating their businesses, and raising interest rates now, or just cutting back on the amount of credit that they are granting. I heard one commentator say that in five years, there would be only 50% as much consumer credit available on credit cards as there has been in the past. So if you have open credit cards now that you intend to keep, use them responsibly. Also, do use them, because if you have cards that you do not use, they are likely to be cancelled, as the issuers are consolidating their credit portfolios.

A little humor

“The Texas Three Kick Rule”

My brother David Black, a longtime Texan told me about the rule many years ago.

A big-city New York lawyer went duck hunting in rural Texas. He shot and dropped a bird, but it fell into a farmer’s field on the other side of a fence. As the lawyer climbed over the fence, an elderly farmer drove up on his tractor and asked him what he was doing.

The litigator said, “I shot a duck and it fell in this field, so now I’m going to retrieve it.” The old farmer replied, “This is my property, and you are not coming over here.”

The indignant lawyer said, “I am one of the best trial attorneys in the United States, and if you don’t let me get that duck, I’ll sue you and take everything you own.” The old farmer smiled and said, “Apparently, you don’t know how we do things in Texas. We settle small disagreements like this with the Texas Three-Kick Rule.”

The lawyer asked, “What is the Texas Three-Kick Rule?” The Farmer replied, “Well, first I kick you three times and then you kick me three times, and so on, back and forth, until someone gives up.”

The attorney quickly thought about the proposed contest and decided that he could easily take the old codger. He agreed to abide by the local custom. The old farmer slowly climbed down from the tractor and walked up to the city fellow. His first kick planted the toe of his heavy work boot into the lawyer’s groin and dropped him to his knees. His second kick nearly wiped the man’s nose off his face. The barrister was flat on his belly when the farmer’s third kick to a kidney nearly caused him to give up.

The lawyer summoned up every bit of his will and managed to get to his feet and said, “Okay, you old coot, now it’s my turn.”

The farmer smiled and said, “Naw, I give up. You can have the duck.”

Are bill collectors threatening to take your home or garnish your wages? Are they threatening to do anything else that they are not allowed to by law?

Is your mortgage company charging you fees and costs that are not due? Does your credit report have inaccurate items that the credit bureau refuses to fix? Are you just overwhelmed with debt? If any of these situations describes you, contact Mr. Black at 713-772-8037 or send him an email at [email protected]

Every man dies. Not every man really lives.
-William Wallace

Only those who will risk going too far can possibly find out how far one can go.
-T.S. Eliot

ARE YOU IN CHAPTER 13 NOW? Always keep the law office updated with your current address, telephone numbers, and email address. We may need to reach you quickly. 24 hours/7 days a week, you can check on the status of your Trustee payments, how much you still owe on your case, etc., by going to to set up your user ID and password. Lose job or overtime? Expenses increase? Want to give up property to lower payments? Go to , click on ” Current Clients Click Here” on home page, and fill out the Motion to Modify worksheet. Fax to office at 713-772-5058. We’ll review it and contact you if a change to your plan is possible.