How easy is it to re-establish credit after a ch 7 bankruptcy ???
2006-11-01 01:27:56 · 11 answers · asked by ROSIE 3 in Business & Finance ➔ Personal Finance
The answer is, "it depends."
With some lenders, as long as your bankruptcy remains on your credit reports you will be denied credit.
The good news is, there are many "normal" lenders who are willing to work with you after bankruptcy. You just need to know where to find them.
It's NOT about working with lenders that are convenient for you. It's about finding lenders that will work with you without taking advantage of your situation.
Each lender sets their own "credit guidelines." What are credit guidelines? They are simply the minimum requirements you must have in order to qualify for credit with that lender.
The three common credit guidelines for most lenders who work with people after bankruptcy are: (1) the amount of time you have since your discharge; (2) how you pay your bills after discharge; and (3) your FICO® credit scores.
Time will heal.
The maximum amount of time the dark cloud of bankruptcy follows you is up to 10 years. Remember, this dark cloud is only for a season in your life, not forever. Bottom line: the more time you have after your bankruptcy is discharged the more opportunities you'll have to get credit.
But lenders also need to know you've recovered. Late payments after a discharged bankruptcy are bad news. Lenders need to see an early or on-time payment history to feel comfortable with you after bankruptcy.
There is no escaping a lender who will judge us on our credit scores. This is why it is so important to increase your scores by deleting inaccurate, outdated, and unverifiable information from your credit reports. Your FICO scores are just too important to ignore. You need to make it a priority to keep your FICO credit scores as high as they can be. High credit scores are the key to unlocking opportunities that have been hidden from you.
2006-11-01 06:47:12 · answer #1 · answered by Brian H 2 · 0⤊ 0⤋
I know Chapter 13 actually re-establishes credit.
I assume how Chapter 7 works, it could take more time. What helps is the fact a person can not file Bankruptcy again for a specified amount of time. Creditors know this and are more willing to extend credit. They may charge a higher interest rate, but, in time as you make on-time payments you will begin to receive more Credit Card offers. Other type loans may also be obtained for Car/House whatever. It depends some on the Bank on how they handle these things. Some actually want ex-bankruptcy as they feel you are a better credit risk.
2006-11-01 01:39:50 · answer #2 · answered by Snaglefritz 7 · 0⤊ 0⤋
Not as easy as everyone claims. Yes, you may be able to get credit cards and even buy a car , but a BK will make it difficult to buy anything like a house or to start up a business. Talk with the lenders and get help from a debt counseler before you go that route.
2006-11-01 03:24:12 · answer #3 · answered by newtexan 2 · 0⤊ 0⤋
Yes It is so easy to apply credit after ch 7 bankruptcy, but you need also a financial adviser, so that you cannot do mistake again with your financial statement. Visit: http://freshstartsolutions.com.au/bankruptcy/
2014-10-14 22:20:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Asking a financial disaster lawyer in case you should report financial disaster is like asking an coverage shop clerk in case you decide on coverage. the respond is inevitable. financial disaster may be your maximum suitable decision, yet until now consulting an lawyer, make an appointment with a credit counselor. it ought to keep you loads of money interior the long-term.
2016-12-09 00:40:08 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Its a wises action could help you free to start a new beginning. This mean that you need to settle first your debts but better to consult and experts consultant for more advices.
2014-11-28 13:08:00 · answer #6 · answered by Anonymous · 1⤊ 0⤋
It will be very easy. When I did it, People were sending me credit applications for credit cards and new phones & stuff. Be carefull because it will be just as easy to go Bankrupt again.
2006-11-01 01:36:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Smartest way to restart is if you can get a cred card (or a loan) again use it only up to limit you know you can pay back and make sure you pay it back on time.
2006-11-01 02:01:14 · answer #8 · answered by goldenboyblue 3 · 0⤊ 0⤋
You have a fresh start, and some new challenges and this is your change to go beyond and start from new beginning.
2015-01-19 01:23:30 · answer #9 · answered by keithlyn 1 · 0⤊ 0⤋
All depends on the lenders mood (economy) and how high your disposable income is (ability to repay new debts)
2006-11-01 01:36:38 · answer #10 · answered by kate 7 · 0⤊ 1⤋