Recovering from Bankruptcy in Reno
A common misconception is that a bankruptcy ruins your credit rating, and that you will not be able to obtain any new credit after filing for bankruptcy. This is actually quite far from the truth. The bankruptcy attorneys at Darby Law Practice not only help you navigate to financial freedom through a Chapter 7, Chapter 11, or Chapter 13 bankruptcy, but will also provide you with helpful advice on how to reestablish and rebuild your credit following a bankruptcy.
Obtaining Credit Cards After Bankruptcy
Quite the contrary from not being able to obtain credit cards after bankruptcy, bankruptcy filers are frequently inundated with application offers immediately after filing bankruptcy. In fact, credit card companies scour bankruptcy filing lists to find new customers. The reason is that you emerge from bankruptcy debt-free, or at least with a much lower debt-to-income ratio than you had before bankruptcy, making you a much better credit risk than when you were carrying all that debt. Also, since you generally cannot file a second bankruptcy for several years, creditors have an extended period of time to collect from you in the event you default.
Of course, if runaway credit card spending is what go you into financial trouble in the first place, it is wise to carefully consider the consequences of your actions before signing up for new cards. Hopefully, the credit counseling you receive will provide you with the knowledge and skills you need to make the best choices. Used responsibly, credit cards can be an effective tool in rebuilding your credit and raising your credit score over time.
Obtaining Home Loans After Bankruptcy
Generally speaking, it takes on average four years to fully recover from a bankruptcy filing, where you may be in a position to get the best interest rates on the best loans available. Even so, several traditional lending opportunities are available long before that. Under current standards of the Fair Housing Act, an individual can obtain an FHA home mortgage loan two years after bankruptcy (as opposed to a three year waiting period after a foreclosure or short sale).
Obtaining Car Loans After Bankruptcy
Automobile financing is usually relatively easy to obtain shortly after bankruptcy. There is an entire industry offering second chance auto loans. These are often referred to as buy-here, pay-here operations. While these alternatives always come at a higher interest rate, they are viable options for those in need to purchase reliable transportation with financing. As your credit rating improves, you may be able to refinance at a lower interest rate.
Reno Attorneys for Bankruptcy and Life After Bankruptcy
We are here to help you find relief from overwhelming debt and get back on your feet financially. In addition to helping you obtain a discharge of debt in bankruptcy, we want to make sure you have the tools and knowledge going forward to make sound financial decisions and live comfortably within your means, including borrowing on credit in a reasonable manner. Contact Darby Law Practice for a free consultation today.