Many people are surprised to find that they actually have an easier time obtaining credit or making a purchase after filing for bankruptcy, a recent study by the Federal Research Bank of Boston supports this finding. The reason for this is because prior to filing for bankruptcy, there was a bunch of unpaid debt listed on your credit report. After filing for bankruptcy, the majority of that debt has been completely erased forever.
For credit lending agencies, you are a clean slate with no debt. This makes you a more desirable candidate for credit. Additionally, credit lending agencies know that you won’t be able to file another bankruptcy for many years, and therefore, the risk of their loans to you being discharged in a future bankruptcy case is low. You will not get as high a credit limit as you once had, or be able to borrow a large sum of money, but getting some credit (such as a secured credit card) shouldn’t be that difficult.
By contacting a Fort Lauderdale Bankruptcy Attorney, you can wipe the slate clean, giving you a fresh start. This means that all debts incurred before the bankruptcy are discharged, everything starts from zero. It does not mean, however, that you can take on new loans and credits and fall behind on payments. As long as you pay your bills on time (at least the minimum monthly payment), you can rebuild your credit long before your bankruptcy history disappears from your credit report.
What you will likely face is higher interest rates, required higher down payments, more points, etc. Some people do have difficulty rebuilding their credit, but it is usually due to other factors besides bankruptcy, such as their employment record, other credit problems, etc.
Take advantage of our free initial consultation and sit down with Kristy Qiu, Esq. who will personally evaluate your options. When you need to protect your home, health, and future in the face of serious financial turmoil, put our professionals on your side in bankruptcy court.
To discuss your concerns regarding foreclosure, debt liquidation, or debt repayment plans, contact our offices. Call us at (954) 282-8296 to arrange an initial consultation and find out what we can do for you.
