Most people are afraid of filing for bankruptcy because they believe they will not be able to get needed credit again. This is simply not true.
First, you must remember that by the time you are considering filing for bankruptcy, your credit score has been substantially impaired.
Second, it is important to understand that bankruptcy doesn't have the negative impact it used to. From advertisements, you will see that car companies are anxious to provide credit to anyone willing to buy or lease a new car.
The important thing to recognize is that each person has the ability to build a new credit history showing their post-bankruptcy track record. When you meet with us, we can give you specific steps you can take to start building that new record.
Even if you have to initially pay a higher interest rate, your payment history on the next car loan will help you obtain a better interest rate when you trade that car in for a new one.
If you file a Chapter 13 case, and make payments to a bankruptcy trustee (who then distributes the money to your creditors), the payment report you receive from the trustee will serve as documentation to a future lender that you have the ability to make timely regular payments now, notwithstanding the difficulties you may have faced in the past.
Our clients who have implemented our suggestions on how to improve their credit scores have reported that they have obtained car loans as soon as they get their bankruptcy discharge, usually about four months after the case is filed. If you have filed for Chapter 13 bankruptcy, there are loan programs that enable you to get a new mortgage in one year. In Chapter 7 cases, we have helped people get new mortgages three years after discharge.
Since it is illegal for a government entity to discriminate because of bankruptcy, it will not interfere with student loans you may need to obtain for your children.
The key fact that many people overlook is that the very fact of the bankruptcy filing eliminates all the pre-bankruptcy bad credit issues, and allows you to start fresh, showing a post-bankruptcy credit history when you seek new credit. We are happy to work with you after the bankruptcy discharge to assist you in monitoring your credit report, and improving your credit scores.
Contact the Staten Island Bankruptcy Attorneys of Corash & Hollender, P.C.
If you are overwhelmed by debt, our lawyers can help determine the debt relief option that is right for you. Contact us online or call 718-442-4424 to schedule an appointment to discuss your situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.