- One thing that you cannot do after filing bankruptcy is file for bankruptcy again in the near future. This is not something that you can do frequently to get rid of the debts that you accumulate. Laws prevent you from filing Chapter 7 bankruptcy more frequently than once every eight years. Even if you do file after waiting eight years, there are no guarantees that you will receive another bankruptcy discharge. If you file Chapter 13 bankruptcy, you must wait two years to file again.
- After you go through bankruptcy, you will, at least for a few years, be unable to buy a house with a traditional mortgage. While you could potentially get a hard money loan and buy a home, it will come with an interest rate that is much higher than most people can afford. When you file for bankruptcy, it hurts your credit score significantly. If you try to get approved for a mortgage after that, the lender will typically decline your application for several years after the bankruptcy discharge.
- Once you file for bankruptcy, you should expect the damage to show up on your credit report for several years. In fact, the bankruptcy will appear on your credit report for 10 years from the date of the discharge. Regardless of any approach attempted, you cannot get the bankruptcy judgment off your credit report. While you can take necessary steps to raise your credit score, it will have no effect on the judgment itself.
- Besides being declined for a home loan, you may also be unable to get other sources of credit. In some cases, you may not be able to get an unsecured credit card right away, but you can get a secured card. You may be ineligible to get a traditional auto loan, but you could get approved for a loan from a "buy here, pay here" auto dealer. You will need to rebuild your credit score over time before credit will be easy to come by.
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