If I declare bankruptcy will I be able to rent an apartment or get a credit card in the near future?

Question

I just graduated college and I have a number or outstanding credit debts. I don't know where else to turn to beside bankruptcy. I just started my career and I can't afford to pay off all of my debts.

Answer 1

You may have to "shop" around. But be careful, because if you do not get approved, it will show up on your credit report as an inquiry after so many inquiries creditors may start thinking you are attempting to increase your liabilities.

The first thing you would want to do once you receive your discharge order, is get a copy of your credit report from all 3 bureaus and make sure everything is correct. Most people think the bankruptcy court and attorneys are responsible for reporting to the credit bureaus, but it is actually the creditor. Just make sure they are showing that you have a "0" balance, they cannot show that it is in collections or charge off. You would have to send them a copy of your discharge order and schedule F (unsecured creditors). They can still report when you were late up to 7 years.

On the apartment, you may want to contact a local HUD counselor, they do work with renters.

Regarding the credit card, you may want to wait six months and you can try applying. HSBC/Orchard Bank/Capital One would be great cards to apply for, although the interest rate will be high. Avoid First Premier like the plague (seems like people file bankruptcy just on the fees they charge).

http://www.consumerlaw.org/initiatives/bankruptcy/content/using_credit_wisely.pdf

Answer 2

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RE If I declare bankruptcy will I be able to rent an apartment or get a credit card in the near future?

I just graduated college and I have a number or outstanding credit debts. I don't know where else to turn to beside bankruptcy. I just started my career and I can't afford to pay off all of my debts.

Answer 3

Do not file bankruptcy. It used to be don't file bankruptcy unless your bills are more than $65,000 but with the new law that came out earlier this year you'll have to pay at least part of them anyway, plus a bankruptcy will hurt your future, may hurt getting any kind of management job. If you've just graduated college then you will be able to earn enough to pay off those debts. Just eat beans and you'll survive, and get two jobs. Become a responsible person and pay your debts. There is no easy way out. You made the bills now you get to show you're an upstanding citizen/person and show the world you can do it without whining. Cut your debts, and cut up all your credit cards except one, and put that one in the freezer and stop charging. When you can't see up over the hole you've dug for yourself, you have to stop digging.

Answer 4

Each person's experience after bankruptcy is different. People emerging from a Chapter 7 bankruptcy with a job and no debt are sometimes good credit risks. I've seen people get a discharged and a year later their credit is back to 740 or so.

A bankruptcy will be on your credit history for 10 years. It will follow you around, but it is not the end of the world either. Consult a local bankruptcy attorney for me information about your situation.

Answer 5

Can't afford or would rather spend the money on something else?

There is a good chance you will still be required to pay all or a portion of that credit card debt if you file for bankruptcy.

But to answer your question, it will be more difficult to rent an apartment or get a credit card if you file for bankruptcy.

Answer 6

Filing for bankruptcy should be your last alternative. Since it would leave a scar on your credit rating for several years I doubt that’s what you really want to do. You mentioned that you have a lot of school loans. Loans that are government guaranteed are not able to be included in bankruptcies; you have to pay them back. So that leaves you with credit cards if you have one or many and with the recent changes with the bankruptcy laws you might not be able to include them either. You could contact you creditors and explain your situation and try to set up a payment plan that will satisfy both parties. Having bad credit could stop you from having the great job that your looking for in your future. If you still having trouble seek legal advice. Again, set your self down and figure out what you can afford to pay each debtor. Do not leave your self short of what you need to pay for your rent, food, and other items that you might need and cut out those that you can do with out till you can afford them. And yes, it can have an affect on your chances on getting an apartment and credit cards in your future too!

Answer 7

Student loans are not cleared by bankruptcy. Bankruptcy gives you bad credit for 7 years which means you may not get any creditcards or homeloans for that time. Don't risk it, instead consolidate the loans with a non-profit agency and pay with low or no interest plans.

Answer 8

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.

Answer 9

Take responsibility for your errors. Consider this part of your education. Go to a debt counselor, find out how to consolidate your debts, and pay them off.

Answer 10

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