Many people file bankruptcy every year. Although this may not be the most appealing situation for you, it might be the best way to get out debt and start rebuilding your life. If you are in far too deep and are unable to even function because of your debt, you might consider filing for bankruptcy.
Here are a couple things you should expect after filing for bankruptcy:
1. Your Credit Score Will Hurt
Many people who are in need of bankruptcy services already have a problem with their credit score. In fact, having a low credit score after bankruptcy might not bother some people.This is because at least after bankruptcy you can start working toward raising your score.
Be aware that after bankruptcy you will have to start from the bottom up.
Depending on the type of bankruptcy you filed will affect your score. Not everyone will have the same blow to their credit history. But you should expect at a major drop to your credit score.
2. It Will Take A While To Get A Mortgage, Car Loan, Or Personal Loan
After filing bankruptcy it will be challenging to qualify for a loan. This is why it is important that after filing you are ready to pay cash for everything. If you lost your house in the settlement you might need to rent for a while.
As for cars, you will have a hard time qualifying for a car loan and will probably have to buy an affordable, older car until you can either pay for cash or until you can build your credit up enough to get the loan.
Although this might seem like a major blow, it could actually be the best thing for your finances. By not being able to take out any major loans on credit you can learn how to manage your finances with cash and stay debt free longer.
3. You Will Get A Lot Of Offers From Credit Card Companies
You can expect to be contacted by a lot of credit card companies offering you the chance to start over. Although you might be tempted to jump right in and start building your credit again you should be careful about which cards you choose.
Some of these cards have high activation fees and costs. In addition, the interest rates might be very high. For this reason, you should be careful about which cards you choose to sign up for.
These are just a couple things you can expect after filing for bankruptcy. To learn more, or if you have other questions, contact a company such as Howard S. Goodman Bankruptcy Attorney.