How Will Bankruptcy Affect My Job and My Credit?

Your credit report reflects your financial ability or inability to pay your debts. If you are unable to pay your debts in a timely manner then this will be reflected in your credit report. If you take the necessary steps to correct your financial situation your credit will be reported in a positive fashion. It is not uncommon to receive credit card offers after you file your initial bankruptcy case. Generally it takes about 18-24 months after filing bankruptcy to establish good credit. Some employers will pull your credit report when evaluating you for employment opportunities. Credit worthiness is most likely to be considered in evaluating candidates for various employment positions in several different career fields.  A bankruptcy will typically appear on your major credit reports for seven (7) years for a Chapter 13 up to ten (10) years for a Chapter 7 bankruptcy.  Many employers will respect that a bankruptcy was filed to regain control of debt issues and that the potential employee took action to correct their financial obligations.

CAN I PURCHASE A CAR OR HOME AFTER BANKRUPTCY?

Purchasing an automobile or home after a bankruptcy discharge depends on how quickly you can rebuild your credit and what your income is.  Over time you can regain the credit necessary to obtain a home mortgage or an automobile loan. It is not impossible to regain your credit when you file a bankruptcy.

Buying a Car After Bankruptcy Discharge

Some strategies you can implement to get a car loan after a bankruptcy include: Waiting a longer period of time to buy a car; purchasing a car that is cheaper; paying off the loan in a shorter duration of time and/or contributing a larger down payment to save on interest.

Buying a Home After Bankruptcy Discharge

Generally, after a bankruptcy, you may qualify for a home loan within 18 to 24 months of the bankruptcy but every person’s situations is different. Some ways to improve your credit score are: securing an auto loan, obtaining lines of credit or opening a secured credit card, and staying current on your payments.  An improved credit score will help you secure a mortgage loan with a lower interest rate. Some borrowers can save for a larger down payment and also consider purchasing a home in a more affordable price range.