You might be wondering what happens after you
to help you clear your debts. There are serious ramifications to filing bankruptcy
as a means to reduce your debt. Let's take a look at some of the common problems that
you're liable to encounter.
Buying a Home After Bankruptcy
Chances are if you've filed for bankruptcy in the last twenty-four months
you will find it nearly impossible to find a mortgage company that will allow you
to take out a
loan. If you do, chances are
these loans will have incredibly high interest rates and exorbitant monthly payments.
In today's market with more and more lenders having problems with defaulted loans,
you'll find it even more difficult than it might have been even a few years ago.
If you're considering purchasing a home in the next twenty four to sixty months
you'll want to seriously consider other options for managing your debt instead of
Bankruptcy and Your Credit Score
Once you have filed bankruptcy it is critical that you understand that
Chapter 7 bankruptcy will remain on your
for a minimum of ten (10) years. Other
forms of bankruptcy
are highly unlikely to be removed from your credit report ever. While
it is true that bankruptcy filings offer you a "clean slate" to some degree,
you really are going to have to work on rebuilding your credit file.
Some ways for you to improve your credit score include:
- Making any and all payments to creditors on time - you may need to consider a
secured credit card
or a gas card (they normally require paying your balance in full
monthly) and making sure they report to the major credit reporting agencies monthly.
- Don't apply for every card that is offered to you - while this might sound like
it's common sense, too often when you've been in the position of not being able to get
any credit it might be tempting to build up your credit by taking on additional credit
cards. This is a trap - the fewer the cards with a solid repayment history the
better for you.
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What About Employment After Bankruptcy?
You may not be aware of this but if you're currently employed, your employer cannot
take any adverse actions after you've filed for bankruptcy. This includes - denying you
promotions, raises or other "benefits" that you would normally be entitled to.
This however is very different if you are searching for a new job. While state, county
and government employers cannot discriminate against you because of filing a bankruptcy,
private employers can refuse to hire you. Most employment applications today include a
disclosure of financial information. Learn more about
Employment and Bankruptcy.
If it is at all possible for you to avoid filing for bankruptcy to get out from under
your debt you should definitely consider other options such as
credit card debt consolidation.
Bankruptcy filings should be done only as a last resort and not to avoid paying debts.
In the long run, this option can be very costly.
Related topics: Bankruptcy Introduction,
Types of Bankruptcy,
New Bankruptcy Laws,
What Bankruptcy Cannot Do