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I am planning to file for bankruptcy to eliminate my car loan and medical bills, but I am worried about the long term consequences of bankruptcy. Will I be able to get a new car loan after I file for bankruptcy? I don't plan to buy a house for a long time, but might want to some day - will I be able to get a mortgage after bankruptcy?
8 ANSWERS
Glen Edward Ashman
This is part of why you see a lawyer to discuss bankruptcy. In your consultations you will get advised as to effects on your credit, and how to minimize them.
Answered on Jun 19th, 2013 at 1:10 AM
judith runyon
You should be okay as long s you have a job and no debt!!
Answered on Oct 28th, 2011 at 1:21 PM
Right now, three years from bankruptcy is the criteria for new loans. This could change if the banks decide to free up money.
Answered on Oct 14th, 2011 at 2:31 AM
Filing for bankruptcy will definitely have a negative effect on your credit. Filing for Chapter 7 for full discharge will have a worse impact than filing a Chapter 13 reorganization. You can begin repairing your credit soon after your case is discharged. It may be more difficult to obtain financing for a new car and the interest will probably be higher, but it can be done. The bankruptcy will appear on your credit report for 7 to 10 years only. It alone will not prevent you from getting a mortgage in the long term.
Answered on Oct 05th, 2011 at 10:26 AM
Daniel James Wilson
BK is a major event on your credit score, equivalent to a foreclosure. You should plan on having no credit. Live on a cash basis. That said, you will receive offers of credit after you file, but at very high interest rates. I advise you to be very careful about accepting any of these offers. An exception might be to buy a car on credit. The best way to rebuild your credit is to establish a history of on time debt payment such as a car loan. Several car dealers have programs for people in bankruptcy. Typically, such a loan starts out at high interest rates which slowly go down as you make payments on time. Make sure you can afford the payments. Three or four years post-BK is realistic.
Answered on Oct 04th, 2011 at 11:38 PM
Chapter 7 Bankruptcy Attorney serving Appleton, WI
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Sisson & Kachinsky Law Offices
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Filing for bankruptcy will affect your credit but should not prevent u from buying a car. However, u may have to use a special credit firm like JD Byrider to get the car until u get back on your feet and your credit reestablished - post bankruptcy.
Answered on Oct 04th, 2011 at 1:26 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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Bankruptcy is on your credit report for 10 years after filing date, but it doesn't mean you won't have credit for 10 years. As weird as it sounds, chapter 7 bankruptcy is often the fastest method of restablishing credit. The average diligent debtor with good income is able to establish decent credit within 2-3 years after filing chapter 7 bankruptcy (after a chapter 13 is more complicated). In Colorado, you will be solicited immediately after filing bankruptcy for new vehicle loans. These are terrible deals. High interest rate loans for an overpriced vehicle is what you are offered.
Answered on Oct 04th, 2011 at 1:25 PM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Bankruptcy stays on your credit report for a long time10 years. After bankruptcy it will take awhile to re-establish credit. You will likely be eligible for a car loan after one year. It will take 2-4 years to qualify for a house purchase.
Answered on Oct 04th, 2011 at 10:39 AM