Once I File Bankruptcy, When can I Acquire Credit?
People who file Chapter 7 Bankruptcy are curious to know when can they apply for credit. Many people have the same questions and concerns when can I get credit. After I file for bankruptcy will any financial institutions lend me money? If so, when? Can it take longer than 10 years to qualify for a loan to purchase a house or a car? In short, the answer is no. Yes, by filing bankruptcy it appears on your credit report through the credit agencies between 7 to 10 years. Those are the facts. However, many lenders are willing to lend money to those who file bankruptcy in about 2 years or maybe even sooner. I was told this by clients who filed bankruptcy. Now, they are ready to buy a house which a lender was willing to offer financing because they discharged their debts. By filing bankruptcy, they got rid of those debts and through time their credit score improved by paying their bills on time. People can receive financing for a car at a lower rate because they had filed bankruptcy. These people had tons of debts and by filing bankruptcy gotten rid of those debts. Afterwards, their credit score improved, so that they qualify for lower interest rates if they have not filed for bankruptcy.
The purpose behind this is that once a person files bankruptcy. They will get rid of those debts and make a fresh start. They will be able to pay for their bills on time. Their credit scores will improve. If they have not filed for bankruptcy, they will not be able to pay their bills. If they purchased a car using a lender, the lender will offer financing at a very high rate. These are the realities they have to deal with when carrying a large amount of debt. In fact, by filing bankruptcy and discharging their debts, they can be able to finance a car or home at a lower rate as opposed to not filing bankruptcy. Bankruptcy protection is for those who have debts and not able to pay for debts or struggle to pay for the debts. Bankruptcy protection is not for everyone. It has to be done in good faith. Bankruptcy protection positions are debtor to have a fresh start financially. For a Chapter 7 Bankruptcy protection, a debtor can file request for it again after 8 years. For other Chapters under the Bankruptcy code, it can be done much sooner. It depends on your financial situation.
You can call the Soubra Law Firm. We are happy to help you to take the right path and answer any questions that you may have regarding the Bankruptcy code. Bankruptcy does not fit every person’s situation, but it can help most people out there. You should take the right steps and contact the Firm. Rest assured you will be able to sleep well again without having the heavy burden of debts rests on your shoulders.