Will I Ever Be Able to Get Credit Again?

1. Will filing bankruptcy ruin my credit rating?

Based on the simple fact that you are considering filing bankruptcy, your credit rating is probably already very low, or you are looking at events that will take it there in the very near future. A bankruptcy filing is a significant dent in your credit rating and will push your score lower. As with many people facing bankruptcy, credit scores are so low already that a bankruptcy can’t do any more damage.

2. Will I ever be able to get credit again?

The simple answer is yes. People who are actively considering filing bankruptcy have credit ratings such that they cannot get any new credit. Once they file for bankruptcy, their ability to borrow improves significantly. Pre-bankruptcy people typically owe a large amount of unsecured debt. Post-bankruptcy that debt disappears. Your are a better credit risk for two reasons. One, you no longer owe that large amount of money. Secondly, you cannot file Chapter 7 again for eight (8) years. Our experience is that client’s typically receive new credit card applications within two months of the time they file their Chapter 7 bankruptcy case.

3. Will I get a great interest rate with a high credit limit?

The answer is no, but there are credit card companies that will extend credit cards shortly after filing Chapter 7.

4. Will I be able to finance the purchase of a car?

As soon as your discharged is issued, you will become eligible to finance the purchase of a new car. Once again, you will not get the best interest rates, but if necessary you will be able to finance the purchase of a car.

5. Will I be able to finance the purchase of a house at any time in the future?

The simple answer is Yes. Federal Housing Administration Rules say that you will be ineligible to qualify for a mortgage for the first three (3) years after you file for bankruptcy. After that, what will matter are all the typical things that go into the decision to grant a mortgage or not, ie: do you have the income to make the mortgage payments; have you been paying your bills on time after you filed bankruptcy.