One of the most frequently asked questions about filing for bankruptcy has to do with how long the case stays on your credit, and how quickly after you file you can begin to rebuild your credit. For many people, having good credit means enjoying lower interest rates on loans, and can also help you get a better rate when renting a car or on your auto insurance. So the sooner the notation that you have filed bankruptcy drops off your credit, the sooner you can start receiving financial offers that include favorable repayment terms. But you do not necessarily have to wait for the bankruptcy case to disappear altogether from your credit before you can take on new debt.
There is no question that bankruptcy does go on your credit report, but having this information show up on your credit is not the end of the world. For example:
● If you reaffirm a debt, the lender you reaffirmed with will make that notation on your credit and show that you are making on time payments (as long as you do continue to make your payments on time).
● Many lenders are willing to make loans to people who have filed for bankruptcy, so you will still be able to get credit if you need it; the difference between money loaned after you file a case and before the fact is that the interest rate offered is usually higher. For some people, this is not a deal breaker and you can still obtain credit or take out loans even with a bankruptcy on your record.
● A lot of auto lenders offer programs to buyers who have been through bankruptcy, making it possible to purchase a safe vehicle if that is one of your post bankruptcy needs. And again, if you make the payments on time, that will be noted on your credit history. The more data to show you are reliable and can be counted on to pay your bills, the more likely you are to rebuild your credit quickly.
If you do decide to take on new debt after your bankruptcy case, your credit will start to rebuild right away. In just a few short months you can have good marks on your credit, and the impact of a bankruptcy will begin to decrease.
For help with bankruptcy and for information about how bankruptcy impacts your credit rating, contact us at www.DsouzaLegalGroup.com.