One of the biggest misconceptions of filing for Bankruptcy is that people think that they’ll never get credit again. To the contrary, most everyone who files for Bankruptcy will be able to get credit again. Believe it or not, in most cases you can get credit within days or weeks of The Discharge in Bankruptcy. How do we know? Well at The Law Offices Of R.J.Atkinson, our clients in Austin, San Antonio, Dallas, Houston, and other cities in Texas who have chosen to file for bankruptcy have shown us the offers for credit they have received after bankruptcy. Sometimes we even receive offers for our clients after their bankruptcy discharge.
Getting Credit after Bankruptcy is Easier than you think
If you watch TV, listen to the radio, read the newspaper or surf the Internet you will see advertisements offering credit to people who have filed for Bankruptcy. There are a number of lenders who are willing to mortgage homes, finance vehicles, and issue credit cards because they know you are out of debt. Although these credit offers will probably be at higher interest rates you will at least have a fresh starting point to begin to rebuild your credit. Since the credit rating you had right before filing for Bankruptcy probably wasn't that good to begin with a new start at a higher interest rate and a clean slate is better than no start at all.
Since a bankruptcy filing will stay on your credit report for up to 10 years and some lenders may see you as a credit risk because you have lawfully written off or discharged most of your previous debts. The fact is, you will probably have the ability to repay any new debt obligations if your income is now freed up. Creditors know that after you receive a Chapter 7 discharge you can't declare Chapter 7 Bankruptcy again for eight more years. Creditors also realize you will most likely want to re-establish your credit sooner than later and that the likelihood of a person filing a Chapter 7 Bankruptcy more than once in their lifetime is fairly low.
There is credit available to people who have filed for Bankruptcy and interestingly, more often than not, people who file a Chapter 7 Bankruptcy seem to have a much easier time re-establishing credit than those who have filed Chapter 13 Bankruptcy. Some times having a Bankruptcy on your credit is better than having late payments, judgments, and other negative information without a Bankruptcy Filing. Some creditors consider a new clean slate better than an old marked up one.
There are of course downsides to having a Bankruptcy on your credit. Some employers now run a credit check as part of the employment process. Some health care providers such as dentists run your credit before providing health services. And, credit is most always one of the factors considered by insurance companies when issuing or quoting an insurance policy. If you have a Bankruptcy you may have much higher rates for insurance. And, even though it is your constitutional right to seek Bankruptcy Protection to address your debt responsibly, creditors, banks, lenders and even family & friends can view Filing for Bankruptcy in a negative light.
Bankruptcy is a serious decision and filing for Bankruptcy will have a lasting impact on your life as well as your credit. If you live in Austin, Houston, San Antonio, or Dallas, and are considering filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy contact The Law Offices Of R.J.Atkinson for a free bankruptcy evaluation. We would like to help you face your Debt and obtain a fresh financial start. Don’t Lose Everything!!!