Rebuilding After Bankruptcy-Modesto, CA

Most people believe that they can't purchase anything for 7 years after they file for bankruptcy. A debtor can usually qualify for a credit card within months after filing for bankruptcy. You can actually purchase a car from a dealership and get a loan immediately after filing. Many people who can't qualify for a car loan are able to qualify by filing a chapter 7 bankruptcy. If you have car loan that you are paying on, then it would be a good idea to keep the car throughout the bankruptcy. This will help your credit instantly after filing.

If you are unable to stay current on your credit cards, then filing a chapter 7 bankruptcy is probably your best option. Many people make the mistake of burning through their retirement or savings before coming to the conclusion that they have to file for bankruptcy. If they had filed for bankruptcy earlier, they could have kept everything in their retirement/savings. Contact the Modesto lawyers at the law office of Ben Roberts before you make any of these types of mistakes.

Keeping whatever credit you can

As explained above, you should certainly keep the car that you are making payments on. If you have other secured debt, like furniture or a lab top, then it would be wise to keep that as well. After your chapter 7 discharge you will instantly have credit. You can't keep any of your credit cards if you have a balance on them, but you might be able to keep credit cards with a zero balance. Whatever you do, don't close out these credit cards.

Rebuilding Credit after Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcies involve a repayment plan over the course of 3 or 5 years, allowing a debtor to restructure their debt and pay what they can to unsecured creditors. The discharge in a chapter 13 won't come until the end of 3 or 5 years as opposed to a chapter 7 where your discharge comes within a few months. Therefore, with a chapter 13, it takes longer to rebuild your credit.

Contact

For some reason people tend to thing that a bankruptcy means their finances are ruined. This is completely untrue as filing for bankruptcy can be the reason why their credit comes back so fast. Contact the Modesto bankruptcy attorneys at the law office of Ben Roberts today for some pre-bankruptcy planning.