Many individuals who are considering bankruptcy have specific questions about the process and the ways it will solve their financial problems before the actually take the steps to file a bankruptcy petition. The majority of these issues are likely of primary concern to people who are thinking about filing for bankruptcy, and they can often discuss them with a qualified bankruptcy attorney when they initially decide to hire one. A little further down the road, bankruptcy petitioners are more likely to have questions focused on what they can expect after the process is completed and their debt is discharged. At this point, the focus is shifted to life after bankruptcy, and it may surprise many how promising their financial life can look.
Bankruptcy is a complex process, and one should seriously contemplate and discuss it with a professional before deciding to enter into it. However, there are times that appropriately call for one to file a bankruptcy petition, and it is not something to avoid or view in a negative light. In fact, it can provide many people with a fresh financial beginning. After filing a bankruptcy petition, many are surprised at just how quickly they can start a new, promising financial future. The following are some of what you can expect once your debt is discharged through bankruptcy.
Immediate approval for certain types of credit, such as a secured credit card, is sometimes possible. This may be because creditors can see that a bankruptcy proceeding just ended, and that a debtor is usually not able to file for bankruptcy again for several years.
After approximately two to three years, a debtor may begin to receive some good offers for car loans. And after approximately two to three years, a debtor will usually start getting competitive rates on mortgages and home loans.
Bankruptcy clears your debt, but your credit history remains, and negative items will appear even after your bankruptcy case ends. However, there will be less of an impact on your credit as time passes and as more recent, positive items show up in the report. This may improve a petitioner’s credit rating relatively quicker than expected.
A Word of Caution
Just because debtors who recently completed their bankruptcy case are sometimes eligible for credit sooner than they thought, it is not always a good idea to take advantage of such offers. Many credit card offers carry high fees that the cardholder must pay even if the card is not used, as well as other charges that can quickly escalate and lead to a precarious financial situation – similar to what likely led to the decision to file for bankruptcy in the first place. Debtors should use good judgment in opening credit accounts and work to re-establish credit responsibly.
It is important to note that many, if not all, of these common expectations usually depend on the specific circumstances of a bankruptcy case. An experienced bankruptcy attorney can counsel one’s clients appropriately based on the facts of the case. If you or someone you know is considering bankruptcy, contact the lawyers at Hoffman, Larin & Agnetti, P.A. to schedule a consultation to discuss your matter. Our offices are located in Dade, Broward, and Monroe Counties.