After Bankruptcy – What Then?
You may think that after bankruptcy, you will have to conduct your self differently and that can”t do the things that you did before. This is, however, is not the case. When we say that bankruptcy is a “fresh start”, that’s what we mean. You are really starting over.
You will be relieved to know that there are no legal limitations on the type of property that you can own after bankruptcy. This means you leave all of your dischargeable debt behind and start over. You can legally buy a house, buy a car, or even start a business.
Obtaining Loans After Bankruptcy
Most people need loans to make big purchases like houses and cars. Lenders are not prohibited by law from extending credit to you after bankruptcy, but some may be cautious. Mortgages generally take the most time, but it is likely that you will be able to qualify for a mortgage loan within two to four years after your bankruptcy as many lenders follow the FHA guidelines. If you have someone willing to co-sign for you, it may even be sooner. Often you can qualify for a car loan without a co-signer as soon as you receive your discharge.
Rebuilding Your Credit
Of course, after bankruptcy, the interest rates you are offered may not be as favorable as they might have been if you did not have financial problems. But most people who file for bankruptcy are already experiencing severe financial problems and do not qualify for favorable lending terms even before they file. After bankruptcy, if you take steps to rebuild your credit, such as making your post-bankruptcy credit payments on time and limiting the amount of credit you use, the terms on which you will be offered credit will improve.
Carolyn Secor P.A. focuses its practice in the areas of Bankruptcy and Foreclosure Defense in Clearwater, Florida. For more information, go to our web site www.BankruptcyforTampa.com or call 727-335-7151.