Filing bankruptcy will most definitely affect your credit score. A Chapter 7 bankruptcy will typically stay on a person's credit record for 10 years. With each passing year the effect that any item in the bankruptcy will have on an overall credit score will decrease.
How Long Will Bankruptcy Stay On My Credit Report?
In a Chapter 7 bankruptcy recognition of the bankruptcy will stay on a person's credit report for 10 years.
How Soon After, Will I Be Able To Get Loans or Credit After I File For Bankruptcy?
There are no set rules in relation to how long it takes to rebuild a person's credit score after a Chapter 7 bankruptcy is filed. If you maintain your home through the bankruptcy then it would help to maintain all mortgage payments on time, this will have a positive effect on creditworthiness after the bankruptcy is over. You should have a savings account and have a credit balance in that account and pay bills on time. If you receive a credit card after bankruptcy it is recommended to either not use it or pay any purchases off immediately. If you have no credit card, you should apply for a secured card about six months after the bankruptcy ends and keep up all the payments.
When Will I Be Able To Rent An Apartment Or Buy a Home or Car?
Renting a home is possible after a bankruptcy. If you are having difficulty securing your ideal home you should deal head on with this problem by speaking to the rental management company and explaining the terms of your bankruptcy and your ability to pay for rental payments ongoing. You may need to show you are past the credit crunch by taking an alternative accommodation and continuing to pay rent payments on time for 6 to 12 months. To buy a home or a car it will be necessary to build up savings while making regular payments to show you can make ongoing payments on time again and that you have cash to secure the loan with if need be.
Will a Bankruptcy Affect My Eligibility for Receiving Student Loans?
Since there are different types of student loans the regulations for each type are not the same. It is possible to take federal student loans after a bankruptcy as the ability to secure federally backed loans most likely will not be effected. However, you should not have any previous delinquencies on previous federal student loan repayments. School loan programs and private loans for education will be affected by a bankruptcy the same as any other loan so the same advice applies – build up creditworthiness through keeping bills repaid on time, creating a savings and rebuilding y our credit.
How Soon After a Bankruptcy Should I Start Trying To Rebuild My Credit?
Start trying to rebuild your credit immediately after a bankruptcy as it will take time and the consistency of ongoing creditworthiness can only be established through multiple actions of repaying bills on time and staying credit worthy.
How Many Years Does It Take For a Person or Company To Rebuild Their Credit?
It depends on how hard a person tries to rebuild their credit after a bankruptcy – if a person actively rebuilds their credit post-bankruptcy then within 12-24 months you should see improvement in your credit profile.
For more information on Bankruptcy and Credit Score in Iowa, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (515) 451-1260 today.
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