Bankruptcy Lawyer  | What Can You Do After Bankruptcy?

Bankruptcy Lawyer  | Can I Get Credit Cards, Loans, and Mortgages After a Bankruptcy?

After Bankruptcy

At first, it’s a relief—you file bankruptcy, and the creditors stop harassing you. Your phone stops ringing, you’re no longer afraid to pick up the mail, and the juggling act ends. You can devote your income to keeping up your living expenses and trying to get your financial life back on track.

But many people who file bankruptcy are worried about what comes next. They’ve heard rumors like, “You can’t get credit for ten years after you file bankruptcy.” Naturally, when you’ve just filed bankruptcy, your credit won’t be strong. Of course, your credit probably wasn’t strong when you were dealing with the crises that forced you to file bankruptcy, so that’s nothing new. Your bankruptcy will not erase your good credit or make your report blank. Whatever negative and positive information that was on your report regarding your payment history will remain there. Your accounts instead of saying “Paid, as agreed,” “settled in full,” “settled,” or “charged off,” will read “Discharged in bankruptcy.”

Here’s what you can realistically expect after your bankruptcy discharge:

● After bankruptcy, you won’t immediately be able to qualify for most conventional mortgages, car loans, and

● You’ll probably pay a higher interest rate for your first few loans or credit accounts—those rates are the like. For most people who file bankruptcy and then pay their bills on time, however, those loans will be within reach 2-3 years after discharge. It’s not a quick fix, but it’s also a far cry from the ten years many people have been led to expect. dependent on your three-digit credit score, and those scores will be low right after bankruptcy. However, negative items on your credit—even bankruptcy–have less and less impact as they age. More recent items will carry more weight, so make sure that you keep your current accounts current.

The bottom line is that if you’re like most bankruptcy petitioners, not much will change right after your discharge. Your credit was probably weak before you filed bankruptcy, and it will be weak immediately after. Without those old debts hanging over your head, though, you’ll have the opportunity to start to rebuild your credit. In time, if you handle those early accounts carefully, your credit can be stronger than it was before you filed and you’ll begin to see not only more credit available, but lower interest rates and more favorable terms. -bakersfield law



Our office can assist you in determining whether bankruptcy is the right choice for you, and which chapter under the Bankruptcy Code would provide you with the most relief.  To schedule a free consultation with a knowledgeable Bakersfield bankruptcy lawyer about filing a Chapter 7 bankruptcy in Kern County, please call our office today at 661-888-4335 .