In a bad economy, bankruptcy is an unfortunate byproduct for many Americans. Filing for bankruptcy can give you a fresh start. Unfortunately your credit has basically gone down the tubes after bankruptcy. But on the bright side all your debt has gone away. Find out what happens after bankruptcy.
Here is what you can realistically expect after you file for bankruptcy:
Filing for bankruptcy will have a negative effect on your credit score and will remain on
your credit report for up to 10 years. After bankruptcy you won’t be able to qualify for most conventional mortgages, car loans, and credit cards. Bankruptcy will not provide you with a quick fix for helping you get a new loan, but it can help you achieve good credit within a relatively short period of time. Rebuilding financial stability after bankruptcy can begin in as little as six months. Bankruptcy will clear your debts but will not clear your credit history. Between 7-10 years after filing, bankruptcies may be erased from the filer’s credit report.
Once your credit score is on the rise you can begin to qualify for loans. You can use small loans paid on time to slowly regain credit during the sensitive rebuilding process. Make sure that you are making all of your payments on time!
Filing for bankruptcy makes an impact on a filer’s life for years after debts have been repaid or discharged, but the freedom bankruptcy gives to those burdened by debt can make the process worthwhile.