Note: This is not legal advice, but instead practical information that applies to the majority of cases. Please do not rely upon this information without a consultation with a qualified attorney. Prepared By Chris Rampley, Attorney at Law

LIFE AND CREDIT AFTER BANKRUPTCY

November 17, 2016

Reestablishing credit after Bankruptcy is one of my clients biggest concerns, but it is usually some of the news that I am happiest to give!  Getting credit after bankruptcy and increasing tour credit score is actually not very hard at all!  Read below to learn how to reestablish credit after bankruptcy

 

 

 Questions and Answers:

 

How soon until I can take out new credit?

Chapter 7 – As soon as you want to, but most creditors will not lend to you until the case is over

Chapter 13 – You cannot take out credit while the case is open unless we get court permission.

 

When can I buy a house?

The federal rule to be eligible for a federally backed home loan (FHA Loans, for example) is 2 years after your case closes. However, you must have sufficient income and re-establish good credit after bankruptcy to qualify.

 

When can I buy another car?

Chapter 7 – At any time, but most lenders will not lend until after the case is over (3-4 months).

Chapter 13 – At any time, but a request to get another car has to be approved by either the Court or the Trustee.

 

How long does bankruptcy stay on my credit?

7 – 10 years from the day the case is filed with the court.

However, most people can have a 600-700 credit score within 2 years of filing bankruptcy!

 

What is the worst thing about credit after bankruptcy?

High interest! Believe it or not, most people can get credit after a bankruptcy. The main problem is very high interest for the first 1-2 years! We recommend only taking out small loans at most until about 2 years after bankruptcy.

 

If I win the lottery, receive an inheritance, or life insurance, do I have to report it?

Chapter 7 – Yes, if you get the rights to it before filing, or within 180 days of filing

Chapter 13 – Yes, if you get the rights to it before filing, or during the time your case is open.

 

What if I get divorced?

Chapter 7 – Your case will not be affected if you get divorced after filing your Chapter 7, but a divorce settlement may have to be reported to the chapter 7 Trustee

Chapter 13 – You and your (ex) spouse will have to decide how to split up the payments

 

What happens if I pass away before the chapter 13 ends?

Then your heirs can decide whether or not to proceed with your case.

 

Can I add more creditors after I file my case?

Yes. If you add all your additional creditors (on debts that are incurred before the case was filed) at one time, it will cost only $30.00. You cannot add new debts that are created or incurred after your case is filed unless the creditor and the Trustee agrees to the addition.

 

Thank you ror reading!  If you need to file Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in North Georgia give us a call at  706-291-7060 and we will discuss all of your options!

 

Copyright  2016 Chris Rampley Bankruptcy Attorney

 

Note: This is not legal advice, but instead practical information that applies to the majority of cases. Please do not rely upon this information without a consultation with a qualified attorney. Prepared By Chris Rampley, Attorney at Law.

 

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