Credit After Bankruptcy? It"s Possible!
I am frequently asked, and rightfully so, how long will a bankruptcy be on my credit report and will I ever be able to get credit again? The standard time for a bankruptcy to appear on a credit report is 10 years.
However, the mere fact that it appears on your credit report is not the issue.
The issue is whether, at the time you apply for future credit, you will meet the factors necessary to qualify.
Whether you have filed bankruptcy or not, the most important factor a lender is going to consider is your income.
If your income is good, the lender is certainly more receptive.
Likewise, showing the ability to repay the loan which will look at your monthly expenses and outstanding debt at the time of lending will be a very important factor.
At the time one decides to file bankruptcy, there has usually been a substantial period of time that you have been unable to meet your monthly obligations.
As such, your credit score is already on the low end.
It should be noted that, in most cases, within six months AFTER the filing of a bankruptcy, your credit score will actually go up! Why? Because your score is calculated, in part, on the amount of your total outstanding debt which the bankruptcy just wiped out a substantial amount.
Actually, most bankruptcy clients find that shortly after filing, they will be inundated with credit card applications because the credit card industry knows that you can't file bankruptcy again for another 8 years.
They will be more than happy to ensnare you in their endless cycle of outrageous interest.
Sadly, it was recently admitted on a popular radio show that the credit card industry actually targets recent bankruptcy filers OVER people with good credit because these people are known to use lines of credit heavily.
They are betting against the purpose of bankruptcy as giving you a fresh start.
There have been many cases of people being able to obtain cars, houses, etc.
within 6 months to two years post filing.
There is a clear difference between having something on your credit report versus being able to obtain credit.
Most knowledgeable and sophisticated lenders will decide on many factors to decide your qualification for credit and the longer the time passes that you remain current on your bills and show the ability to repay the loan, the mere fact that you filed bankruptcy will fade and fade from consideration.
However, the mere fact that it appears on your credit report is not the issue.
The issue is whether, at the time you apply for future credit, you will meet the factors necessary to qualify.
Whether you have filed bankruptcy or not, the most important factor a lender is going to consider is your income.
If your income is good, the lender is certainly more receptive.
Likewise, showing the ability to repay the loan which will look at your monthly expenses and outstanding debt at the time of lending will be a very important factor.
At the time one decides to file bankruptcy, there has usually been a substantial period of time that you have been unable to meet your monthly obligations.
As such, your credit score is already on the low end.
It should be noted that, in most cases, within six months AFTER the filing of a bankruptcy, your credit score will actually go up! Why? Because your score is calculated, in part, on the amount of your total outstanding debt which the bankruptcy just wiped out a substantial amount.
Actually, most bankruptcy clients find that shortly after filing, they will be inundated with credit card applications because the credit card industry knows that you can't file bankruptcy again for another 8 years.
They will be more than happy to ensnare you in their endless cycle of outrageous interest.
Sadly, it was recently admitted on a popular radio show that the credit card industry actually targets recent bankruptcy filers OVER people with good credit because these people are known to use lines of credit heavily.
They are betting against the purpose of bankruptcy as giving you a fresh start.
There have been many cases of people being able to obtain cars, houses, etc.
within 6 months to two years post filing.
There is a clear difference between having something on your credit report versus being able to obtain credit.
Most knowledgeable and sophisticated lenders will decide on many factors to decide your qualification for credit and the longer the time passes that you remain current on your bills and show the ability to repay the loan, the mere fact that you filed bankruptcy will fade and fade from consideration.
