Buying A Home
In light of the credit crunch and the wave of foreclosures that have swept the country, buying a house after bankruptcy has become a lot more difficult. At the very least, lenders will generally not offer a home loan for someone who has filed bankruptcy in the last 2 years. Getting a loan after that will largely depend on the size of the down payment you can make and whether your income is verifiable. That being said, even then the loan you will qualify for will likely have high interest rates and monthly payments.
This being the case, maintaining on time payments and perfect credit history after bankruptcy is extremely important. Even the slightest sign of consistently delinquent payments, overuse of credit, or having too much debt and your eligibility for a mortgage loan will be thrown into question. Unfortunately, the sub-prime mortgage crisis has made life after bankruptcy even more difficult.
To read more on this topic, following this link: Buying, Getting & Purchasing a Home After Bankruptcy
Improving Your Credit Score
If you have already filed, there is no reason to dwell on the credit impact. Instead, you should start focusing on the ways that you can start improving it. Despite what you may have heard, removing a bankruptcy from your credit is unlikely (unless of course you filed Chapter 7 more than 10 years ago and it should be off your credit report anyway). Bankruptcy is intended to give you a fresh start, but from a credit standpoint, it will take time for you to rebound.
Some simple steps to improve your credit faster:
-First and most obviously, make on time payments to your creditors. Getting the credit in order to do this may be more difficult, however, getting secured credit cards or gas cards are easy ways to get credit again after declaring.
-Don't max out your credit lines. This is a simple way for potential lenders to see if you have a problem abusing credit---if you are using the full line it is a huge warning sign that you may be a big spender.
-Don't apply for too much credit. In the same light as the above, applying for several credit cards or loans at once is a warning sign you may be abusing your credit.
For more information on this topic, please read our article about your Credit Rating, Score & Report After Bankruptcy
Employment Issues
It is illegal for both private and government employers to discriminate against someone upon learning they have filed bankruptcy. That means you cannot be fired, have your salary reduced, or be denied a job promotion on the grounds that you have declared. How can they find out? Rarely does it ever happen except in the event you file Chapter 13 Bankruptcy because your wages may be automatically deducted each pay period and given to the court trustee handling your case.
Although it is clear that people who need relief through bankruptcy can do so and not jeopardize anything with their current employer, the laws pertaining to bankruptcy discrimination is very different for job applicants, at least in the private sector.
For a more in-depth look at the issues in this section, read our article on Employment, Careers & Jobs After Bankruptcy
Avoid Declaring - If You Still Can
Avoiding bankruptcy, if possible, is always advisable because of the financial consequences discussed above. PayingPaul.Com can help match you with a pre-qualified provider at no cost for a free consultation. Simply fill out a form and discuss your options with an expert to see if personal bankruptcy is your best choice. Get started today!