Life after Bankruptcy


At Halling & Cayo, S.C., we believe that Chapter 7 bankruptcy is all about getting a fresh start.  Here are the answers to some frequently asked questions that will help you take advantage of this fresh start, rebuild your credit, better avoid future financial pitfalls, and enjoy your life after bankruptcy.

Can I get credit after bankruptcy?

Those who have filed Chapter 7 bankruptcy frequently worry that they will never get credit after their filing, or that it will be 10 years before they can obtain credit. Neither is true.

In today’s competitive lending environment, credit is available to the recently bankrupt and there is an entire class of lenders who target recently bankrupt customers.  

Yes, a Chapter 7 bankruptcy does stay on your credit report for ten years, but it becomes less significant the more time elapses.  In fact, you are a better credit risk after bankruptcy than before.  This is because before you file, potential creditors considering whether to loan you money or provide financing to you will look at your credit report and realize that they must compete with other creditors for your payment.  However, after your bankruptcy, those same potential creditors will see that you no longer owe any money, which means that they will no longer have to compete with other creditors for payment.

Also, potential creditors know that you will not be able to even consider filing another Chapter 7 bankruptcy for 8 more years, so in many ways, you are a much better credit risk after filing than before.

Immediately after the discharge of your debts, credit may be more expensive than before your filing, more difficult to obtain and available with lower limits, but it will be offered.  It will grow less expensive over time, however, as you improve your credit.  Have more questions or need help filing a bankruptcy?  Send us a message!