As a result of filing bankruptcy, the negative mark can remain on your credit history for up to ten years. It is unpredictable how long it will affect your ability to get credit. Often you will start to receive credit offers in the mail soon after your bankruptcy case is over. These initial offers will come with a high-interest rate and unfavorable terms, as they are counting on you falling back into the credit habit.
If you are seriously behind on your debt payments, your late and missed payments will already be reflected in your credit report. These negative marks can stay on your report for up to seven years. Filing bankruptcy is unlikely to make your credit any worse.
When other creditors are considering you for a loan, they may look favorably at your old debt being wiped away. They may also recognize that you will be unable to obtain another bankruptcy discharge for the next six years.
Receiving a mortgage to purchase a home may be more difficult with a bankruptcy on your credit report. If you have reestablished good credit by paying your bills on time and not getting high-interest loans in a period of two to four years after your discharge, most lenders will not hold the bankruptcy against you.
Some lenders may ask for collateral or a co-signer for security. And then, some lenders do not even check your credit report when you are applying for credit. In either case, make sure you are using your credit wisely and that your debt will be covered in case of loss of income or unexpected expenses come your way.
If you are overwhelmed in debt and would like to know how bankruptcy could help you, contact a Fort Worth bankruptcy attorney to discuss your options.