Will you be able to get credit after filing for bankruptcy ?
smom asked:
I am thinking I need to file for bankruptcy. I want to be able to buy a house though in the next year or two. How do people get credit after filing ? Can you buy a house after filing ?
I am thinking I need to file for bankruptcy. I want to be able to buy a house though in the next year or two. How do people get credit after filing ? Can you buy a house after filing ?
Yes, you will be able to get credit, maybe not right away, but with 4 or 5 months, and you will also be able to get a home loan too.
Comment by Gordon S — November 19, 2009 @ 5:09 am
It is very difficult to get any kind of financing following a bankruptcy.
You can start building your credit score back up while the effects of your bankruptcy last on your credit report. One of the major ways a credit score can be improved is by using secured lines of credit.
Once you have filed bankruptcy, what you need to do is to start saving some money. I can be $10 every month to $100. The point is to safe as much as you can without worrying about the amount.Secured lines of credit are where the lender allows a credit account to be active even after bankruptcy, provided that the maximum amount of the credit is being protected by an equal amount from your own funds.
Comment by Chiran — November 22, 2009 @ 12:29 am
It usually takes 2 years before you can start building your credit again. If you can put away money evey time you get paid, you should have enough in 2 years to get a secured credit card. Most banks can set it up. Make sure they belong to the credit bureau. The most important thing on your part is control.
Comment by stan c — November 23, 2009 @ 8:10 am
You’ll get credit no problem . . . after a few years. It will take at least two years before you can get any credit at all and 10 years for the bankruptcy to leave your credit report. A lot of people try to wait that 10 year period until that bankruptcy isn’t reported on their credit report before they go for new credit. But even after it’s gone, it’s like starting out from scratch with no credit at all.
About getting a house, you may be able to buy a house after about two years, but it’s more than likely going to cost an arm and a leg in financing.
If buying a house in the next two years is really something that’s important to you, I would suggest finding a way around bankruptcy.
Comment by Daniel Roach — November 24, 2009 @ 6:35 am
Once your bankruptcy is DISCHARGED, not filed, you will be able to start rebuilding your credit rating. The credit card offers will come flooding in, use them wisely and watch your credit score zoom up.
Comment by telewheelsmike — November 24, 2009 @ 7:41 am