It is a common bankruptcy myth that you cannot receive credit after filing for bankruptcy. In reality, many people who file for Chapter 7 or Chapter 13 bankruptcy are able to secure credit in a relatively short period of time. If you have questions about how bankruptcy will affect your credit, the Chicago bankruptcy attorneys at Ledford & Wu are here for you. We have extensive experience handling bankruptcy cases for clients throughout Chicago and the surrounding suburbs.
Is filing bankruptcy right for you? Contact a bankruptcy attorney by e-mail or call 888-542-1900 for a free consultation at any of our ten office locations. Our Chicago bankruptcy lawyers are here to protect your rights.
Your Credit After Filing Bankruptcy
You can start rebuilding your credit as soon as you receive a bankruptcy discharge. The law neither prohibits lenders from giving you credit after bankruptcy nor does it require them to do so. All the law says is that, if a credit bureau chooses to keep the information about your bankruptcy (and they always do), it can only do so for up to 10 years. What to do with that information is up to lenders. If a bank's policy is that they don't want to do business with people who filed bankruptcy, that's OK. If a mortgage company is willing to finance your home in spite of your bankruptcy, that's fine, too.
In reality, bankruptcy does make it harder, but not impossible, for you to get credit. In life after bankruptcy, many people have secured home loans and car loans and gotten credit cards. You may have to make a larger down payment, pay higher interest, or get a cosigner. If you want to buy a house, many mortgage companies ask you to wait a year or two after you receive your bankruptcy discharge before they consider your loan application. Many car dealers will not help you with the financing of a vehicle until you receive your discharge.
The best way to "repair" your credit is time and a good payment history: the farther away you are from a negative incident such as bankruptcy filing and the more accounts you have in good standing, the better your credit rating will be. Our bankruptcy attorneys can help you understand your rights as you begin your life after bankruptcy. We are focused on helping you restore your credit and put your debt problems behind you for good.
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Contact our law offices online or call 888-542-1900 to speak with an experienced Illinois bankruptcy lawyer. We are ready to help.
