WILL ANYBODY LOAN ME MONEY AGAIN
Chances are you are familiar with a popular game where players go around the board in order to buy up property. The players are supposed to collect $200 every time they pass go, keep track of their money, and occasionally pay taxes if they land on the wrong spot. As the game goes on, money starts to dwindle players lose as soon as they declare Bankruptcy. You know the the one!
It’s mind-boggling how much damage one family board game has done to Bankruptcy’s public reputation. In that board game–that most people openly dislike– Bankruptcy marks the end of a player’s journey. In real life, in the United States of America, Bankruptcy is not the end but rather a new beginning. Often referred to as a “fresh start,” its purpose is to help you get back on your feet.
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Sadly, it is true that filing for bankruptcy will have a negative effect on your credit score. However, as discussed in the article How Will Bankruptcy Affect My Credit Score, the truth is that your credit score was likely already in rough shape if you were pushed to bankruptcy due to an overwhelming amount of debt. This is not always the case, but generally speaking it often is.
Yes, you will be loaned money again. Honestly, you will probably start getting credit offers before your Bankruptcy is completely finished! You will not be able to act on these offers until your case is completed but the offers are still there, which is nice. Now just because the offers are there, that doesn’t mean you should take them. You may not want to accept the first offers you get because the interest rates will fairly high, at first.
“Are you sure I’ll be able to get loans in the future?” Yes. I am 100% sure.
Part of the reason the credit offers begin to come in is that your debt-to-income ratio will have shifted because of your Bankruptcy. After you file, you have very little, or no, debt compared to your income which makes you an attractive borrower. Whereas before you filed, it was the other way ‘round.
Typically, you will want to wait a few years before obtaining new credit, if possible, so you can get a better interest rate.
To find out more about Bankruptcy options along with the pros and cons, call RS Law today at 816-287-8080 to schedule a free consultation!