If you are considering filing for bankruptcy, you may fear that if you go through with the filing, it will mean that you will never again be eligible for a loan or for credit. This is simply not true. In fact, your reduced debt load after having gone through bankruptcy can make you appear to be a better bet for lenders. In other words, you may be more likely to get credit after going through bankruptcy than you were when you had an unmanageable debt load. The mere fact that you are allowed to file for bankruptcy multiple times if needed is a clue that lenders are willing to give you another chance after you go though bankruptcy.
How it’s done
As a part of the bankruptcy process, you will be required to go through credit counseling. This can help you build the skills you need to keep your credit healthy, and includes important information about:
- Making (and sticking to) a budget
- Building an emergency fund
- Knowing your credit score
Taking advantage of certain financial products can also help to demonstrate to lenders that you will pay back what you owe. These include:
- Secured loans or credit cards
- Co-signed loans or credit cards
In short, bankruptcy is not the end of the road. In fact, it is just the opposite: a fresh start that allows you to move forward with your life without the heavy burden that comes with unmanageable debt. If you are considering bankruptcy as a way to free yourself from a debt that has spiraled out of control, speak to an experienced bankruptcy lawyer about your options.