Will I ever get lines of credit again if I file for Bankruptcy? It is the number one question I am asked every time a client visits
Michigan Bankruptcy Attorneys . Many have been instructed, mistakenly, that they will never get credit ever again and they're concerned about it. In reality, it is possible to obtain credit cards, auto loans, home loans, etc, even though you filed for individual bankruptcy.
Bankruptcy can remain on your credit report for 10 years, however the older your personal bankruptcy case is, the greater your chances for credit tend to be. If you successfully finish your Chapter 7 or Chapter thirteen, all those bad debts are eradicated out of your credit report ( although it will indicate they were released in individual bankruptcy), which means that your credit rating will increase slightly within months after your discharge. Also, within about 6 months from your discharge, you'll receive credit card applications in the mail, although you will be paying a higher rate of interest than normal. However, if you have a low balance charge card, something you'll be able to repay every month, you can use this card to increase your credit score. Just pay the balance off every month and on time; this good repayment record is going to be reported on the credit report.
There are several ways to use your charge cards sensibly to help fix your credit score. For those who have a mobile that you pay by check every month, use your credit card to pay off your mobile phone monthly bill, then utilize (blank) cash to repay the credit card. The same thing goes for fuel for the car or truck; put a tank of gas on your credit card, then pay the card off.
If you are looking for a auto loan, you will also pay a higher interest rate than usual, however you can still get a car loan. It will depend on your job status as well as your credit rating. the longer you wait to buy a vehicle after bankruptcy, the smaller the interest rate you will be asked to pay. If you are looking for a mortgage, you may have to hold off until 24 months from your discharge date to be able to qualify for a Federal housing administration mortgage.
Michigan Bankruptcy Attorneys suggests when you have a mortgage, car loan, or even utility bills, continue to keep those payments current and pay them on time. Usually, these payments end up being reported against your credit profile and if you keep them current and on time they will be submitted to the credit scoring bureaus and definately will help rebuild your credit rating.