If you file for bankruptcy, will you ever be able to get credit again? Will you ever be able to afford a house or car? What will you do to pay the costs of day-to-day life after bankruptcy?
At John T. Turco & Associates in Omaha, we help our Nebraska and Iowa clients answer these questions so they can decide whether bankruptcy is right for them and what to do after bankruptcy to rebuild their credit.
Rebuilding Credit Through Responsible Borrowing and Spending
You may believe that once you file for bankruptcy, you will never again be able to get a credit card, a car loan, a home mortgage or any other form of credit. You may even be hesitating to explore your bankruptcy options because of this.
Filing bankruptcy does not stop you from getting credit in the future. Your future actions have more of a bearing on your future credit than your past actions do.
Creditors will want to see you take baby steps to start rebuilding credit. If you’re not in default on a student loan, you should be able to get one soon after bankruptcy. You can generally also get a new credit card after bankruptcy. After two years, you can qualify for an FHA mortgage loan on a house. Time heals all wounds, and making smart choices about what to do after filing bankruptcy can get you on the right track.
Some lenders may even ask you to declare bankruptcy on debts you cannot afford to pay before approving you for credit on another loan, such as a home or car loan. This is because filing for bankruptcy starts you over with a clean slate.
Considering Alternatives to Paying for Everything With Credit
You should also consider the fact that credit is not everything. Especially in recent years, reliance on easy credit as a way of building for the future has become increasingly problematic. If you focus on paying for the fundamentals — such as housing and education — rather than needing to finance everything with credit, you can gain real financial independence.
Everyone’s case is different, but many people are able to emerge from bankruptcy and build productive and happy futures.
Contact us to discuss your concerns about life after bankruptcy and what our attorneys can do to alleviate them.