Life After Bankruptcy

Bankruptcy provides a fresh start to debtors. Depending on the lender, credit can be awarded to a bankruptcy consumer within months from the completion of the bankruptcy process. The law precludes a consumer from filing for Chapter 7 bankruptcy for another 8 years, so some lenders see consumers as less of a risk after they file.

Credit reports will list a bankruptcy for up to ten years, and credit scores are negatively impacted for 24 months after filing for bankruptcy. In some cases, a consumer’s credit score may actually improve once the bankruptcy process eliminates high credit card balances.

Mortgages companies will often lend to consumers in a year and a half to two years after filing.