Some people worry that if they file bankruptcy, they will lose the ability to ever get credit. While it is true, when you file bankruptcy it can stay on your credit report for up to ten years. It is also true if you do nothing and you don’t pay your bills, those negative marks will stay on your credit report for up to seven years.
Offers too Good to be True
Many people have reported success in getting credit long before the ten year period is over. Beware of the offers “bad credit, no credit, no problem.” Unfortunately, these offers usually come with a high-interest rate, which may put you back in the same financial troubles you had that caused you to file bankruptcy. You may be surprised when the credit offers start showing up in your mailbox soon after you file bankruptcy. These creditors know you will not be able to file bankruptcy again for another seven years and also that since your debt was wiped away, you will have more income to make the payments.
You will be able to rebuild your creditworthiness when you can prove that you can make your payments on time and avoid getting high-interest rate loans. Obtaining and using credit responsibly will allow your credit rating to improve steadily. If you don’t apply for all the credit lenders are offering you, and you pay your bills on time, your credit record will reflect that and make you look like a good customer again when you apply for loans.
If you have questions about bankruptcy and how it can impact your credit rating contact a McAllen bankruptcy attorney.