How long will evidence of my bankruptcy filing remain on my credit report? The process of filing a bankruptcy will basically stay on a credit report for up to ten years states a Virgil bankruptcy lawyer. However, this done mean that you will not get credit or offers for credit within that ten-year period. In fact, within six months to two years after filing a Chapter 7 bankruptcy you can qualify for credit.
Some of the credit that you’re going to get will be unsecured or secured credit cards. These credit cards may contain an annual fee as well as high interest. I recommend that my clients refuse credit cards within six months to two years after filing Chicago bankruptcy. What I do recommend is that my clients take out a secured credit card, which is a credit card whereby you have a dollar amount – say $250.00 or $500.00 – on account with a specific bank. The bank then allows you to charge up to your credit limit, which is the amount you have on account.
The benefit of a secured credit card is that the credit card company will report this to the credit bureau as good credit. If you can avoid the bad credit deals immediately after bankruptcy filing, you’ll be in a much better position going forward.
You can purchase a vehicle immediately after filing Chapter 7 bankruptcy. This type of financing is known as ‘Open Bankruptcy Financing’ and creditors are more and more willing to allow you to take out auto financing prior to your case completing. Creditors know that you cannot file another Chapter 7 bankruptcy for eight years, thus they are willing to take a chance on you in terms of credit. They know that you are likely to engage in the same type of conduct that caused you to fall into debt in the first place. The credit card companies are banking on the fact that you will exceed your limit, pay minimum monthly payments, pay the annual fee because you love having a piece of plastic in your wallet and basically make the credit company rich immediately after your bankruptcy filing.
If you can avoid the temptation to get a credit card you are probably better off. If you can go on a cash basis for the next six months to two years after a bankruptcy filing you will see exactly what you are spending. You will not likely get this type of advice from cheap bankruptcy lawyers.