Car and Home Loan after Bankruptcy
Rebounding after Consumer Bankruptcy
You have just received a final discharge of debts in a bankruptcy. A new life, in terms of finances, has just opened up to you.
You can take a sigh of relief once you realize that the threat of lawsuits, relentless phone calls and other forms of creditor harassment are a thing of the past. You will probably be able to save money, once your credit cards and other unsecured debts are paid.
As your financial life improves, so does your outlook. You can now put your full attention on the things that matter most – a secure family life, a productive work day, and a healthy financial future.
Your Credit Score after Bankruptcy
By looking forward, you can forget the stress and financial hardships of the past. You are now free to begin the process of repairing and rebuilding your credit.
Be aware that your bankruptcy filing will be factored into your credit rating score. A credit bureau can report a Chapter 7 bankruptcy for up to 10 years. A Chapter 13 bankruptcy usually falls off your credit report after seven years.
Rebuilding Credit after Bankruptcy
Now is your chance to look up your credit file and to repair or correct any inaccuracies that exist. This is a good time to check to see that all pre-bankruptcy debts listed in your bankruptcy are now discharged and show a zero balance.
You can rebound faster than you think after filing for bankruptcy. You can still obtain credit. In fact, many credit card companies routinely offer unsecured credit cards to people after a bankruptcy because the consumer is free of debt.
Once you apply for an unsecured credit card and pay the bill as soon as it arrives, you are on your way to re-establishing your good credit.
If you are denied an unsecured card, you can always apply for a secured card — as long as you keep enough money on deposit with the issuing bank. Be sure that the bank reports your “on-time” payments to all three credit bureaus.
You can also apply for a small loan that is secured by money in your bank account. Paying off the loan reflects well on you and helps you rebuild your credit score over time.
Car and Home Loans
In as little as one year after bankruptcy, you will probably be able to obtain a car loan from a credit union with a decent interest rate, as long as you are a member of the credit union and you have kept your credit record clean after your debts were discharged.
If you have a good job, you can apply for a mortgage in about four years of filing bankruptcy. You can apply for a mortgage in as little as two years by paying higher interest rates.
New Financial Future
By filing for Chapter 7 or 13 bankruptcy, you can take the first steps toward a sound financial future. Call today to talk to a Tucson Arizona debt attorney. Our number is 520.885.1106.
