What is credit? Credit is your ability to borrow money. Many lenders determine whether or not to lend you money by examining your debt to income ratio = how much outstanding debt you have compared to your income. Remember the reason that your credit is poor right now is because you have so much outstanding debt.
Ask yourself: Would you rather loan money to the person who has $20,000 in credit cards and could file bankruptcy at any time, or the person who has already filed bankruptcy, has no remaining debt, and could not file another bankruptcy for eight years?
Some clients are able to purchase a vehicle on financing the day they receive their bankruptcy discharge. You will probably pay a percentage point or two higher than a person with unblemished credit, but ask yourself how low of an interest rate would you be able to get in your present situation. You should also be able to finance a home within two years after receiving a bankruptcy discharge, as long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment. Many consumer debtors receive credit card solicitations within months of receiving a bankruptcy discharge.
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We received very good advice before, during, and even after our bankruptcy." - Rosa B.