What people really mean is, will I be credit worthy with a Chapter 7 or Chapter 13 bankruptcy on my credit report? There is no easy answer to that. While the fact that you filed a Chapter 7 or Chapter 13 bankruptcy will be on your credit reports, the answer really depends on what your goals are after bankruptcy.
Generally, getting credit immediately after filing a Chapter 7 or Chapter 13 bankruptcy can be hard, unless you are willing to pay a high interest rate. However, most people are not looking to buy a house or a car or truck immediately after filing. If you wait a little time, usually your credit will recover to allow you to get home loans and car loans.
If you do need to buy a car or truck during or immediately after filing a Chapter 7 or Chapter 13 bankruptcy, the experienced attorneys at Croke & Croke know of car dealers that can work with you.
How long it will take to get a new credit card after bankruptcy is less clear. Some credit card lenders will offer you credit cards immediately after bankruptcy. Others may want a few months, or more to go by, before they offer you a credit card. On the whole, you will be able to get a new credit card after your Chapter 7 or Chapter 13 ends. These credit cards will usually carry a high interest rate.
With all forms of credit, credit cards, home loans, car or truck loans, or personal loans, there is one very important thing to remember...What you do after your bankruptcy is as important to getting new credit as filing a Chapter 7 or Chapter 13 bankruptcy. If, after bankruptcy, you get right back into trouble, like, being sued, opening and closing bank accounts, getting in debt, and falling behind on debt, you will not be able to get new credit. Be careful after your bankruptcy ends to stay out of trouble!`
One last note: Chapter 13 bankruptcy is removed faster from your credit reports than Chapter 7 bankruptcy. Even so, you are not allowed to buy anything on credit during a Chapter 13 bankruptcy, which can last between 3-5 years; so most people are able to get credit sooner by filing a Chapter 7 bankruptcy.
For information about types of bankruptcy, see our Guide to Bankruptcy, or contact us at (414) 539-6184.
Originally posted 12/31/15