There is no question that a bankruptcy declaration may offer you immediate financial relief that may save your house from being foreclosed on, your car from being repossessed, and more. However, some forms of financial distress may linger in the many years following your filing date. Namely, your bankruptcy filing may remain on your credit report for up to seven or 10 years after your Chapter 13 or Chapter 7 bankruptcy filing date, respectively. In turn, this may hurt your opportunities for recovering loans and opening additional lines of credit, to name a couple. Continue reading to learn how you can get approved for a credit card and how an experienced Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you build your financial standing post-bankruptcy.
Can I get approved for a loan after my bankruptcy filing?
While you can still get approved for a loan after your bankruptcy filing, it may be difficult to do so, and unideal for that matter.
This is because, with your bankruptcy proceedings, you may only pay back your lenders a portion of what you originally owed them, if any sum at all. So when prospective lenders see a bankruptcy filing on your credit report, they may be doubtful about your ability to hold up your end of this contractual financial agreement. And even if they do approve you with an “older” bankruptcy filing date, they may still impose heightened interest rates and fees.
Can I get approved for a credit card after my bankruptcy filing?
Similarly, getting approved for a credit card after your bankruptcy filing may pose a challenge; while also only posing unfavorable options to choose from.
This is because, in the aftermath of your bankruptcy proceedings, your credit score may drop anywhere from 150 to 240 points. Rest assured, there are measures you may take to build your credit score back up and diversify your credit card choices. They read as follows:
- You may check your prequalification for a certain credit card for free; and you may ensure that you do not get a reduced credit score after you submit your application.
- You may check your credit score for free to evaluate whether you meet a certain credit card’s approval requirements; and you may commence your application from here.
- You may check for certain credit cards that specifically target individuals with lower credit scores; and you may ensure that you pay your statement balance in full each month.
- You may check your credit reports to ensure that any debts discharged through your bankruptcy filing show a zero-dollar balance; and you may dispute any inaccuracies that may appear.
In conclusion, you require the services of a skilled Louisville, Kentucky consumer bankruptcy lawyer before submitting your bankruptcy petition. So please schedule your free initial consultation with us at Schwartz Bankruptcy Law Center today.