Orange County Bankruptcy Attorneys
Credit After Bankruptcy
Can I keep a credit card out of the bankruptcy for use later?
If you owe money on a credit card at the time you file bankruptcy, you must list the card as a debt. Remember, the schedules are filed under penalty of perjury: perjury in connection with your case can lead to denial of discharge of all of your debts. It is also a federal crime.
If you don't owe anything on the card, you don't have to give the credit card company notice of your bankruptcy. Note, however, that they may find out through other means and cancel the card as a precaution. American Express often does this.
Can I get new credit after bankruptcy?
In today's competitive lending environment, credit is available to the recently bankrupt. It may be more expensive than before, and available with lower limits, but it will be offered. A secured credit card is usually available post bankruptcy at lower rates than unsecured cards.
Can I buy a house after filing bankruptcy?
Absolutely. Studies show that 18-24 months after a bankruptcy discharge, bankruptcy debtors can qualify for a loan on the same terms as if they had not filed bankruptcy. That means that the lender will be much more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than your past financial troubles.
Is my credit record ruined by filing bankruptcy?
Bankruptcy is no more harmful to your credit record than the financial circumstances that lead to the bankruptcy filing. In many cases, our clients have seen improvements in their credit scores after their bankruptcty discharge. We also assist with post-bankruptcy credit correction which can improve scores further. Many of our clients have had credit scores over 700 within 6 months of discharge.
Most debtors in bankruptcy proceedings, even those who have never missed a payment, couldn't get new credit from a lender who truly looked at their financial condition. So the fact that there are no negatives on their credit report is only marginally meaningful when looking at the whole picture.
Bankruptcy at least makes all the debt shown in the negative history unenforceable. Objectively, a debtor is a far better credit risk after bankruptcy than before. Subjectively, credit managers are individuals who may not understand bankruptcy or look beyond its negative aspects.
Remember that a bankruptcy is not going to erase the record of your debts listed in your bankruptcy. Credit reporting agencies are within their rights in showing accurate history about your financial affairs. You want to make sure that the bankruptcy discharge also shows on the credit report so that creditors understand that those old creditors have no legal claim remaining.
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We cannot change the past, but we can help you carve out your future through bankruptcy relief and debt help. Dealing directly with creditors or waiting too long to file can have an adverse effect on your outcome. Contact our office for a FREE consultation with an experienced bankruptcy attorney. We will help you understand your options and we are available to intervene immediately with creditors.
We will aggressively protect your rights and assets while we design a recovery strategy based on the law and your financial goals.
At the law firm of Nicastro Piscopo, with office in Anaheim, our Orange County Bankruptcy Attorneys provide legal advice regarding bankruptcy to residents of Orange County, Riverside County, San Bernardino County and Los Angeles County. We are a debt relief agency. We help people file for bankruptcy relief and have been doing so for over 16 years.