This personal bankruptcy question was posted on the internet in 2011 in a bankruptcy discussion: “Will you be able to purchase a car or a home after filing bankruptcy?”
The answer depends on the individual or individuals filling. There are only two ways the filers can make this happen.
The old time way is to pay cash for your car or home. If you can discipline yourself to the point of putting money back on a regular basis, you can pay cash for either a home or a car.
The second and fastest way to purchase a car or home today is to borrow the money in the form of a loan. For bankruptcy filers, getting a loan can be an inconvenience but not an impossibility.
A bankruptcy is reported to the three reporting agencies, Experian, Equifax, and Trans Union, where it remains on the reports for up to ten years. Since credit reporting is public information, creditors can find out this information by simply subscribing from the agencies.
Creditors can view the reports and learn from them your credit reporting scores. They use this information to determine what type of risk you will be in paying off a loan. How a creditor views a bankruptcy filing may be a surprise to many individuals.
Filing a personal bankruptcy is viewed by many creditors as a reasonable response to handling a bad financial situation, and most creditors are aware of the fact you cannot declare bankruptcy again for up to eight years. Therefore, some creditors are willing to risk loaning you money but with a much higher interest rate.
As far as getting a loan for a home, government backed loan institutions are prevented from discriminating against you because of a bankruptcy filing. You can get a loan for a home as long as you show that your credit scores are improving and you have income to handle the payments. Loan institutions not backed by the US Government make their loans based on their own policies.
Car loans are looked at a little differently than home loans. Loans are normally available to former bankruptcy filers as soon as their credit scores begin to recover, usually around 24 months after filing. Once your credit scores begin to rise above a certain point, you can get a car loan, sometimes with decent interest rates.
Will you be able to purchase a car or a home after filing bankruptcy? Yes, there is life after bankruptcy!
Bankruptcy laws can be complicated, and common sense indicates you might need a bankruptcy lawyer in order to help you understand how these complex laws may apply in your particular situation.
If you determine you are in need of relief from the stress associated with debt and you live in or around the metropolitan counties of Bergen or Passaic, New Jersey, contact us here today at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law.
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