The discharge date is when the debtor is no longer required to repay certain debts. How fast you reach you discharge date depends on which type of bankruptcy you filed. Chapter 7 and 11 bankruptcies take a shorter amount of time, but Chapter 13 extends over a longer period of time. Once you are discharged, there are two factors that will determine if you can receive a loan. The first factor is your ability to make payments on the loan, and the second is the lender’s willingness to give you a loan after your bankruptcy. If you cannot afford to make payments or if the lender does not want to give you a loan, borrowing money will be difficult. If you can afford to make payments, getting loans can be an easier process.
After bankruptcy, it usually takes about one to two years to qualify for a non-conventional home loan. Some lenders require a much longer time after bankruptcy. It can often take a year or more to qualify for a car loan. Low limit or secured credit cards are often easy to obtain after bankruptcy, because the credit card companies know that a borrower cannot obtain another discharge any time soon.
When you start borrowing again, it’s important to be economically mindful. Do not get a credit card you cannot afford, only borrow what you can repay, pay bills on time, and do not abuse your credit. These tactics are the keys to maintaining and building good credit.
Consulting a lawyer during your bankruptcy process can make things go smoothly. Aiken Schenk’s bankruptcy attorneys have the skills and experience necessary to help you. Heather Macre, and Philip Rupprecht are dedicated to helping you.
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