Will Anybody Loan Me Money Again
You have likely heard all sorts of myths and untruths about bankruptcy. There is a popular family board game where the game ends once you declare Bankruptcy. In reality in the United States of America, this is not the end but rather a new beginning often referred to as a “fresh start.” It is true that filing for bankruptcy will damage your credit score. However, as discussed in our article How Will Bankruptcy Affect My Credit Score the truth is that you are pushed to bankruptcy by your overwhelming debts, chances are that your credit score is already taken on a lot of damage. This is not always the case as I have had clients come see me with virtually perfect credit scores but who were at the end of their rope and needed help paying their debts in a more manageable way—these folks ended up in Chapter 13 which helps do just that.
Now on to the answer to the question: Yes, you will be loaned money again. The question now is are you going to take out any debts anytime soon. The truth is you will start getting credit offers before your Bankruptcy has completely finished. Now, you cannot act on these offers until your case is completed but the offers are still coming in. Moreover, you may not want to accept the first few rounds of offers because the interest rates will be astronomical. However, it’s nice to know the offers are coming in. One of the reasons these offers are coming in is because your debt-to-income ratio has shifted dramatically because of your Bankruptcy. Before you filed, you had way more debt than you had the income to pay. After you file, you have little to no debt compared to your income which makes you an attractive borrower.
Typically, you will want to wait a few years before obtaining new credit, if possible, so you can get a better interest rate.
To find out more about Bankruptcy options along with the pros and cons, call JONES LAW today to schedule a free consultation!