How badly is your credit affected after bankruptcy? *Serious answers only*?

Question

My husband and I are about to start bankruptcy, but I would like to know how badly it will really affect our credit. I know we cannot do much for owning our own home for approximately two years, but what about other debts, like car loans? Also, once someone has completed bankruptcy, what are some pointers you can offer to begin rebuilding credit (other than paying everything on time)? Thanks!

Answer 1

You can go to google.com and type in legalhelpers and it will give you a ton of insight to lots of your questions. I don't think its the end of the world to file for bankrutcy. We are getting ready to do the same thing. We think its a great law of the land. Giving US citizens a fresh new start in life. Lots of people can't help it because of job losses, medical reasons or the fact credit card companies charge such high interest rates that no one can get out of it. they are robbers in my opinion. You will probably get credit card offers after you finish chptr 7 bankruptcy. Creditors will know you can't file again for 8 years and your limits will be around $250.00 and thats about it.. We plan on getting one credit card after bankruptcy so we can have it for emergencies to rent a car and to have something to rebuild credit and show we can pay on time. However, that is it!! No more credit cards for us, ever.. We are going to use cash only and never live on credit again. Just think, when you and your husband come out of bankruptcy you will have a clean slate and all your debts (except your house) will be gone. The money you used before to pay monthly payments will be yours and you can take that money and bank it. Save it and store it for future problems with your house or car repairs. You can throw your car in on the bankruptcy and next time we buy a car it will be a used on(cheap) and we will pay cash for it. Bankruptcy is not shameful because its the law of the land. Gives you and I a fresh clean start at life. I am so glad we are in the US and we are able to have this law... All the airlines filed bankruptcy and that was our demise. Losing our airline jobs over and over. So we are sticking it back to them!!!

Answer 2

Not to be flip, but you have not even completed your BK and you are wondering how to get back into debt? That is what you are asking. Based on your question, of how badly it will really effect your credit. The accurate answer is it will effect your credit in the worst way possible, as filing BK is the worst thing a debtor can do.

First thing, do not make any inquires for at least 12 months. Then only apply for a card that might approve you. Maybe a clothing store retailer, you will have to look into that later.
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Answer 3

If you haven't sought legal council yet, you must know that the laws have changed. There are steps you need to complete prior to filing bankruptcy.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
With limited exceptions, people who plan to file for bankruptcy protection must get credit counseling from a government-approved organization within 180 days before they file. They also must complete a debtor education course to have their debts discharged.
You would be far better off if you do not file bankruptcy. If you do it's not a free ticket out of debt. It will be on your credit report for years to come. Try to get the debt under control through a counseling service.
Here is a link to those agencies approved by the FTC.
http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm
Govt approved credit counseling agencies.

Answer 4

any kind of credit will be very difficult if not impossible to get for 2 yrs or so - credit acrds - I'm 6 yrs removed from a bank and still can't get a cc with less than a 19.9% rate. home mortgage - not likely to be able to get one for at least 3-5 yrs - my cred rtg was over 700 in 5 yrs - bought my first house - 7% mtg with zero down - you won't get zero down anymore though - sub prime mess ruined that