Filing Bankruptcy Concerns
- Posted by admin on January 29th, 2009 filed in Finance
A big concern for those Americans who choose to file Chapter 7 or Chapter 13 Bankruptcy is how and when they will be able to regain their credit. You should understand that the future is bright for those who file for bankruptcy, as long as you commit to changing your prior spending habits.
Filing bankruptcy does not prevent you from getting new credit. Many lenders target recently bankrupt consumers as customers. And now is the time to begin credit repair. Directly after a bankruptcy filing, you can expect credit to be more expensive, harder to get, and limited in amount.
Nevertheless, it is important to start using credit to prove to the creditors and yourself that you have learned from your past ways and can commit to paying your bills on time using only a small portion of your available credit and not applying for too much credit at once.
Eighteen to twenty-four months after a bankruptcy discharge, you will qualify for a loan on the same terms as if you had not filed bankruptcy. This means that the lender will be more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than your past financial situation.
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