No one decides when they are little that they want to grow up and file bankruptcy one day. In fact, I think it is safe to say that we would all prefer to have an above average credit score.
The reality of today’s economy is that more and more people are feeling that they have no other option. Even people who were previously high income earners are struggling just to cover their basics.
Making the decision to file bankruptcy isn’t easy and it shouldn’t be taken lightly. The truth is that it will follow you around for the rest of your life and will affect everything from your ability to buy a home to certain employment opportunities.
Because of this, make sure you get the bankruptcy help that you need. You don’t have to hire an attorney, but it is a good idea, especially if you have assets. If you decide not to hire an attorney, there are numerous online resources that can offer bankruptcy help and walk you through the process.
Once you have made the decision, there really isn’t any looking back. A dismissed bankruptcy will actually look worse on your credit than a discharged bankruptcy, so it would not make sense to voluntarily back out once you have filed.
The process will take several months, depending on the complexity of your case and the case load in your county. Once your case is complete, you will get a discharge of your bankruptcy.
Once your bankruptcy is discharged, you will probably have mixed emotions. You may be living without extreme financial pressure for the first time in many years. This will feel great. Yet, it is not uncommon to feel sad and ashamed.
The best thing you can do is focus on the future. It is ok to think about past mistakes, just don’t dwell on them. One thing you should focus on is rebuilding your finances.
Credit repair after bankruptcy isn’t a fast process. It will take some time for lenders to see that you have learned from your mistakes and to trust you again.
Getting an after bankruptcy credit card is one of the best places to start. Check out this post on getting a credit card after bankruptcy.
Another great way to get an after bankruptcy loan is through doing a CD loan with your bank. This can be a great way to reestablish both your credit and a banking relationship.
As far as buying a home, you can expect it to take a minimum of two years for you to qualify for an after bankruptcy mortgage. If you also had a foreclosure, you will need to wait at least three years before you can buy a home.
The best thing you can do while you wait is to focus on strengthening your financial situation and credit repair after bankruptcy. While after bankruptcy credit repair isn’t easy, establishing new credit and managing it properly is certainly worth the effort
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