Declaring personal bankruptcy is a tough choice. Nonetheless, sometimes you feel like you simply have no other choice. So, what is life like after your complete your Chapter 7 or Chapter 13 bankruptcy?
Can I Get a Mortgage?
You generally cannot get a home loan for at least a few years, at least not a conventional mortgage. You can try for an FHA or VA home loan within one year after a Chapter 13 bankruptcy or two years after Chapter 7. After several years, you may be able to get a traditional mortgage. However, doing so will may require a higher-than-market interest rate and a larger-than-usual down payment. But, to achieve any of these mortgages, you will need to be able to demonstrate that you have managed your credit and have sufficient income to make your mortgage payments.
What About Leasing?
Bankruptcy technically doesn’t have any limitations on renting an apartment after filing. However, some landlords may be hesitant to rent to you if you have bad credit or a previous bankruptcy. Often times, large rental complexes may accept your lease application but also require a large security deposit or several months’ rent upfront. Smaller or individual landlords may make it somewhat easier, but you will need to explain what happened and why you won’t have that same problem again. Consider getting an apartment lined up before you file. You can occupy that place while you rebuild your credit history. There are even rent reporting services that will report your timely payments to the credit bureaus.
Can I Get a Credit Card?
One of the best ways to start reestablishing credit after a bankruptcy is a secured credit card. This kind of card lets you deposit collateral to establish your credit limit and create a history of paying the monthly charges against that credit limit on time. As you start rebuilding your credit it becomes much easier to apply and get approved for credit cards.
Does Bankruptcy Affect My Job Prospects?
Even with employers that require a pre-hire background check, a bankruptcy won’t usually knock you out of the running. Some jobs, such as in the financial services industry, may require a clean credit history with no bankruptcy filings. However, most jobs will not use a bankruptcy filing as a disqualifier.
Contact a St. Louis Bankruptcy Attorney Today
Deciding to file for bankruptcy is a serious business with potentially significant consequences for your life. So, before deciding what to do, obtain a free consultation with an experienced and knowledgeable St. Louis bankruptcy attorney who can help you decide the best path for you.