Credit After Bankruptcy

You can have credit after bankruptcy. It may sound suspicions at first, How can Bankruptcy help me re-establish my credit? but to understand how bankruptcy can reestablish your credit, we need to understand what credit is.

Credit is your ability to borrow and repay money. Lenders determine whether or not to lend you money by examining how much debt you currently have, and your ability to pay these debts.

If your credit is poor, its because you have been unable to pay your existing debt. Filing bankruptcy will eliminate all your past debt and prevent you from filing bankruptcy again for 8 years.

When a creditor is making a determination to extend credit, they will see that you have filed bankruptcy and are no longer responsible for your past debt And that you CAN NOT file bankruptcy again for another 8 years. So as long as you have the income you are a lower risk applicant then a person who has bad credit and has not filed bankruptcy and can file any time they please.

Many of our client will begin receiving credit card solicitations within one year after receiving their bankruptcy discharge.

You will be able to purchase vehicles on financing after the bankruptcy discharge. You will not get the best interest rates, but if your credit is ruined presently, you are not going to get the best interest rates any ways.

Finally you can purchase a home and you should be able to obtain financing within 2 years after receiving your bankruptcy discharge. As long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment.

Chapter 7 will give you the fresh start and the ability to start improving your finances. Bankruptcy is not an easy decision, but in certain situations, it’s the right decision. I can help you decide if bankruptcy is right for you. My name is Roland Kedikian and I am a California licensed attorney. Call now and ask to speak with me personally