Setting Realistic Expectations for Life After Bankruptcy
Many people mistakenly believe that filing for bankruptcy will ruin not only their credit, but their entire lives. In fact, bankruptcy can be the first step toward repairing your credit and relieving your life of financial stress. Bankruptcy certainly has some serious consequences, but you shouldn’t overestimate the effect they will have on your life.
At the law office of James A. Pixton in Oakland, Alameda and Modesto, California, we help people get accurate information about life after bankruptcy. Contact us to schedule a free 30-minute consultation with experienced bankruptcy lawyer James A. Pixton.
Giving You the Freedom to Make a Fresh Start
The following are some of the typical consequences of filing for bankruptcy. Each case is different, and we can help you determine, based on your individual circumstances, what to expect.
- Credit reporting: A Chapter 7 bankruptcy remains on your credit report for 10 years, and a Chapter 13 bankruptcy remains there for seven years. The important thing to remember is that only a limited number of people and organizations have access to your credit report.
- Credit cards: Many people who have completed a bankruptcy are surprised to find themselves immediately getting credit card offers. While you will want to be careful about the terms of these offers, there are definitely opportunities to rebuild your credit after bankruptcy.
- Car loans: Like credit cards, you can expect to qualify for car loans relatively soon after filing for bankruptcy.
- Home loans: Two years after filing for bankruptcy, you can become eligible for a mortgage loan, assuming you otherwise qualify for the loan and have met certain income and credit criteria since the completion of your bankruptcy case.
- Personal reputation: Bankruptcy is a filing with a federal court and therefore technically part of the public record. In most cases, though, there is no reason to expect your employer, coworkers, neighbors or other associates to find out about your bankruptcy unless you tell them.
As you can see, bankruptcy does not permanently stop you from getting credit. Lenders recognize that you have made a commitment to making a fresh start, and many of them are willing to help you do so. To learn more about the typical consequences of bankruptcy, contact us and speak to attorney James A. Pixton.
