After Bankruptcy, You Can Still Get Credit

  • After Bankruptcy

After Bankruptcy, You Can Still Get Credit

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One of the worries of folks who are considering bankruptcy is that they may never be able to obtain credit again. The lenders and debt settlement firms that are attempting to demonise bankruptcy are the ones who are feeding this anxiety. Let us all keep this in mind: declaring bankruptcy won’t stop you from obtaining credit in the future.

One might anticipate credit to be harder to get, more costly, and of a lower quantity immediately following a file. But one can get it. Although the information about your bankruptcy filing remains on your credit record for 10 years, the longer it has been gone, the less impact it has. In fact, people pose a greater credit risk immediately following bankruptcy than they did before.There are fewer claims made against your income stream after your release. You have a lower debt to income ratio. Even better, your credit score may rise.

When you file for bankruptcy, it will bleed and feel a lot like when you get a cut on your flesh. It soon starts to scab over, looks ugly, but stops hurting as much. The skin then heals and the scab comes off. There may be a scar, but it will eventually disappear.

Debtors are qualified for mortgage loans on conditions that are equal to or better than those offered to borrowers with the same financial circumstances who have not filed for bankruptcy two to three years following discharge. In other words, the size of your down payment and the consistency of your income will be much more significant when applying for a house loan in the future than the fact that you previously declared bankruptcy.

A “right” to credit does not exist. It is quite legal for landlords and credit card providers to take your financial history into account when making a credit decision. However, under the terms of Bankruptcy Code 525, debtors are shielded from discrimination in employment and governmental licensing based only on the fact that they have filed for bankruptcy.

An expert lawyer can guide you through each stage without you having to give it much thought. Visit https://recoverylawgroup.com/bankruptcy/ to schedule an appointment.


    2023-03-30T09:26:41+00:00