Creditors want debtors to believe that they will never be able to buy anything on credit after filing personal bankruptcy. While bankruptcy filing does ding your credit for up to 10 years, it doesn’t mean that credit isn’t going to be available to the post-bankruptcy filer. The great thing after filing personal bankruptcy is many people are debt-free and they are no longer being hassled by the creditors. After the bankruptcy discharge, most individuals feel elated like the weight of the world has been lifted off their shoulders. The birds are now chirping and the sun is shining and everything is good. Not so fast, there is some work to be done. In order for an individual to get their life on track after filing bankruptcy they will need to work on rebuilding their credit. In order to make a large purchase like a home, there are a couple of things that the individual will have to make a conscious effort to work on. These are; building up a savings account and working on their credit score.
If an individual wants to buy a home after filing for bankruptcy, the first thing they will need is money. Most people after filing bankruptcy are debt-free or close to it. Because they have no debt there is no reason why this individual should be able to start socking away a few bucks for a down payment. Building up money in a savings account will look good when applying for a loan down the road. The second thing that will be necessary to qualify to buy a home is the credit score. After filing for bankruptcy the individual’s credit score will probably be at the lowest. This means it’s only got one way to go and that is up. As long as the individual follows some good financial management rules their credit score will come back quickly. Remember, since the individual is debt-free, their debt ratios will be at the best they can possibly be. But the individual still needs to build a payment history to show that the personal bankruptcy filing was something of the past and now the debtor is starting over with a new beginning. The individual should make sure they don’t apply for too much new credit and they paid everything on time. A car loan is usually easier to get than a home loan after filing personal bankruptcy. Sometimes the interest rates might be a little bit higher so it’s important to shop around and get the best deal possible. Overall in a couple years this whole thing will be in the debtor’s past as long as they don’t slide back into their old ways.