What to Expect After Bankruptcy

Posted by Rebekkah On April - 25 - 2013 0 Comment

If you have made the decision to file bankruptcy, you are probably full of negative emotions and facing numerous financial problems. Knowing that you are in debt and out of money can be incredibly stressful, and you might feel talking to an attorney about filing bankruptcy may be your only option.

Although you might have talked to your attorney about what happens before and during your bankruptcy filing, you might not know what to expect after you have filed. There will be a long road ahead of you after filing bankruptcy, but it doesn’t have to all be bad, and you might feel better once you have all of your debts off of your back.

It Will Be Hard to Get Credit Cards

If you think that everything will be better and that you will instantly be able to get credit cards after you have filed bankruptcy, you should know that this is not the case. A lot of credit card lenders are not willing to take a risk on those who have filed bankruptcy in the last ten years, but this doesn’t mean that you won’t be able to get a credit card at all. Starting with secured credit cards is a good idea, and there are a few banks and credit unions that offer these. As you get further from your bankruptcy filing date and you begin to make payments on time, you may find it easier to get various unsecured credit cards and department store cards.

Getting a New Housing Loan is Possible

You might still be able to get a housing loan after you have filed for bankruptcy. However, you have to understand that a lot of traditional housing lenders will not be willing to take a risk on you in the recent years after filing. Through FHA loans and some other options, however, you might be able to buy a house after bankruptcy.

Shady Creditors Might Come After You

Once various disreputable lenders find you have recently filed for bankruptcy, there is a good chance that they will send you offers claiming to help you get your credit back in order. It is important to begin working on maintaining your money responsibly and rebuilding your credit as soon as you can after filing bankruptcy, but hiring scam artists to help is a good way to find yourself right back in financial trouble. Don’t get involved in loans that have ridiculous interest rates and fees in an effort to rebuild your credit; otherwise, you might sink back into debt. Don’t believe companies that claim they can erase your bankruptcy. It is not possible to do, so don’t give someone your hard-earned money who claims that they can provide this non-existent service.

It Will Get Better

The years after bankruptcy can be pretty rough, especially if you want to get credit cards, purchase or lease a new car, or buy a home. However, there are reputable people and companies out there that will work with you and you will be able to start rebuilding your credit after a while. In the meantime, at least you can enjoy that old creditors can’t harass you, which is sure to make you feel better after dealing with the financial troubles that led to your bankruptcy.

About the Author:

This article was written and provided to eFinancial Resource Center by one of our guest Joel Galbrath. Joel is a father of two and a freelance writer. In going through a recent divorce, he too felt the sting of potential bankruptcy. Fortunately, after turning to the Dominion Law Group for assistance in division of property, he was able to avoid filing bankruptcy.

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