A Kentucky bankruptcy does not mean the end of obtaining credit cards, loans and mortgages. As noted by U.S. News and World Report, you may find offers in the mail to apply for secured credit in about one month after your bankruptcy discharge.

Before filling out a post-discharge credit application, you may have had sufficient time to reorganize your monthly budget. You also have the ability to budget without the burden of your previous debt load. After bringing your monthly expenses to a manageable level, you may qualify for an unsecured credit card or a mortgage in about two to three years.

How do lenders view someone who has a bankruptcy record?

Bankruptcy appears on your credit report for up to 10 years, but many lenders use your credit score to determine whether to issue an approval. A discharge generally brings some improvement to your score on its own, but after receiving a new credit card and making on-time payments, it may increase.

Some creditors specifically cater to post-bankruptcy consumers. Many will do so because they charge higher interest rates. By paying off the balance each month, however, you may lower the overall annual interest charges.

How does filing a petition help in moving forward?

Americans generally carry a heavy debt load, and bankruptcy has become a common method for relief from unexpected financial circumstances. As reported by Fast Company, two-thirds of personal bankruptcy petitioners file because of burdensome medical debts.

Other individuals may file for bankruptcy because of divorce or the need to stop paycheck garnishment. Most Kentuckians who file have experienced a devastating financial setback, such as a job loss. For many individuals, regardless of different lifestyles, it may provide an option to gain relief and a fresh start.