How To Get A Loan After Bankruptcy In Addison, Texas
Once you have filed for bankruptcy in Addison, Texas and entered into a repayment program according to the courts, then there are some things that you need to understand before you can become eligible to get a new loan.
By consulting with bankruptcy attorneys Allmand and Lee before you make the decision to file, you will have a good idea of what your financial options will be.
What to Expect
It is important to understand that once you have filed for bankruptcy in Addison, Texas, your credit rating will be affected. Unless it is very critical, we recommend that you not apply for a new loan immediately. This is because even if you do manage to get one, the loan period will also not be for very long and the terms and conditions will not be in your favor, since lenders will treat you as a high-risk borrower.
A better option would be to diligently pay off all your outstanding debts as soon as financially possible before applying for a new loan. That way, your past record and your repayment efficiency will be recorded on your credit report. A favorable credit report will ensure that you are able to get a loan at a lower rate of interest, and with the maximum period possible.
If we decide that you should file for bankruptcy under chapter 13, then you will have to first clear off all previous outstanding debts that you owe to your creditors before you can become eligible for a new loan.
Your Credit Rating
Similarly, if you file for bankruptcy under chapter 7, then you will have to wait for a period of 2 years before you will become eligible to apply for a new loan. You should use this period of time to build up your credit rating so that when you do become eligible, lenders have no hesitation in giving you a loan.
At Allmand and Lee , our clients’ financial situations usually improve drastically in the first few years after the bankruptcy filing.
After the initial 2 year period, your credit rating can only go up; and if you do manage to clear off all your past debt, then your bankruptcy will slowly be pushed towards the back of your credit record. If you have managed to make regular payments, then you could also become eligible for a new loan at regular interest rates and your credit rating will be restored.
So once you have hired us as your Addison, Texas bankruptcy attorney, and we have filed on your behalf, then you will have cleared off your debts and you will be able to successfully apply for a loan in the near future.
Once you reestablish your ability to obtain new credit, make sure that you use it wisely.