A Bankruptcy Lawyer’s Blog

How Long Does Bankruptcy Affect Your Life?

If you have recently filed bankruptcy or are considering filing, you may feel as though your credit will be ruined forever. While bankruptcy does affect your credit, it may not be as horrible as you envision. While it is true that bankruptcy will stay on your record for 10 years, as time passes and you pay your bills on time, its negative effects will decrease over time as you build a positive credit history.

The first year of bankruptcy will be the most difficult. Lenders will note that you have a rough financial past and will be leery to lend you any credit. It is nearly impossible to get an unsecured credit card, although there are a few companies who will issue one depending on your income. While you may be approved for a credit card, the interest rate will probably be very high and your limit will be very low ($250-$500).

Effects on Credit Cards

If you cannot get an unsecured credit card, you will be able to get a secured credit card. Secured credit cards require you to make an initial deposit of at least $200.00 or so, and that is used as your credit limit. A secured card is not a debit card or prepaid debit card, it is an actual credit card and can be used as so. You will receive monthly statements in the mail and be required to make monthly payments. Secured credit cards do report monthly to the major credit bureaus, and they are a fantastic way to improve your credit.

Effects on Car Loan Eligibility

You may be able to obtain a car loan after a year has passed on your discharge. Although you may be able to obtain a loan, your interest rate will be very high and will probably require a large down payment. The longer you wait from your discharge, the better terms you will be able to negotiate with a lender.

Home Loan Problems

Bankruptcy will also prevent you from getting a mortgage loan for two years. After you have taken substantial steps to improve your credit, you will likely qualify for an FHA loan with a down payment as low as 3%.

Bankruptcy does not have to ruin your life. It will affect you for many years, but you can minimize the negative effects by acting financially responsible. Your life will go on, and you will be able to obtain credit cards, home loans and car loans as long as you maintain a good credit rating.

If you are serious about getting out of debt quickly there’s a proven step-by-step technique that works without bankruptcy.

=> http://BankruptDebtExpert.com

If you are 100% ready to achieve financial freedom and reduce or eliminate all of your debt please click here

There is nothing holding you back from the debt free life you deserve.