If i file for bankruptcy(chapter 7) what will i not be able to get?
like its because i defaulted on a car loan that i can only make minimum payments for so they were suggesting i should file bankruptcy. Will i be able to lease another apartment? I have good rental history its just the car loan and some medical bills, will that change anything?
Posted February 27th, 2010 in Bankruptcy Q And A. Tagged: apartment, bankruptcy, car loan, medical bills, minimum payments, rental history.
Many debtors find it difficult to find a new apartment after they have filed bankruptcy, particularly if the landlord runs a credit check prior to renting the apartment. For this reason most bankruptcy attorneys advise finding a new apartment before filing bankruptcy, if a move is contemplated.
That said, you can always find a place to live, even after filing bankruptcy. There are always some landlords who do not run credit checks prior to renting, or who don’t care if you did file bankruptcy … or who realize that if you just filed bankruptcy their chances of receiving their rent payments on time each month are BETTER than if you hadn’t filed bankruptcy because you won’t have other creditors suing you or garnishing your income, etc.
The effects that the bankruptcy has on your ability to get new credit, purchase a home or rent a new apartment, etc., diminish over time. Generally the year or two following the bankruptcy filing are the most difficult in that respect. By 2 or 3 years out, while the bankruptcy will still appear on your credit report, it will be more historical than current, and you will have had an opportunity to begin rebuilding your credit rating. The credit reporting agencies are entitled to report the bankruptcy for up to 10 years, although by convention (but not by law) the three major credit reporting agencies often report Ch 13 bankruptcies for only 7 years rather than the 10 years that they are entitled to. Ch 7 bankruptcies will be reported for 10 years.
Assuming that you have a squeaky clean history of paying all your bills in full and on time after the bankruptcy filing, you should be able to qualify for a FHA mortgage 3 years after your bankruptcy (though not at the best interest rates). You will be able to get a secured car loan almost immediately, although, again, not at the best interest rates. Nobody knows what credit card companies are going to do, with the provisions of the new CARD (credit card) act coming into play later this month. Previously, there were credit card companies that specialized in courting the recently bankrupt, but they may not be so eager to do so now that they cannot charge the usurious interest rates they used to charge. Nobody really knows.
In general, chances are likely that filing bankruptcy will have less impact on your "not being able to get" things than would NOT filing bankruptcy and remaining responsible for large bills that you are unable to pay.
February 27th, 2010 at 9:25 amIf a car loan is the only issue, you are not eligible for bankruptcy. Defaulting on the loan damages your credit history. Filing bankruptcy drops an atomic bomb on your credit history.
February 27th, 2010 at 9:25 am