One of the biggest fears individuals and business owners share when it comes to filing for bankruptcy is what the consequences will mean for their financial future once all is said and done. Understandably, filing for bankruptcy is a big step and it is not something to be taken lightly. There are warnings galore about the negative impact it will have on your credit score and your ability to take out a loan or mortgage, as well as what it will do to your potential opportunities for future financial growth.
Reality Versus Myth
The truth is life really does go on after bankruptcy, but most importantly, you can do more than simply survive afterward; you can thrive after filing for the dreaded “B” word. One of the biggest misconceptions most people have is that bankruptcy equates to financial doom, and that there is no hope for the future once you take the leap.
Fortunately, this is not the case. In fact, you have the ability to do all of the things you once were able to do, such as take out a loan or qualify for a mortgage, although it will take time for you to get to that point. Rebuilding your financial standing is something that must be done steadily and faithfully over time in order to see real progress.
Post-Bankruptcy Approvals and Timelines
Reclaiming your ability to be approved for various loans after you file for bankruptcy will depend on many factors. Not every loan application decision will be black and white. Even mortgage lenders look at a number of different factors when considering granting an approval. While it is true you will experience a waiting period before you can apply for a mortgage, many individuals still experience approval just a few short years following bankruptcy.
Whether you file for Chapter 7 or Chapter 13 can make a difference in how long you have to wait until lenders begin to consider your applications, and one of the most important factors in bouncing back from bankruptcy is your ability to show that you have re-established your credit and that you are capable of managing it responsibly.
Increasing Your Chances for Success
The surefire way to guarantee success after you file for bankruptcy is to re-establish your credit, but the only way to effectively do that is to make every payment on time. You must do this consistently over a period of time to demonstrate progress to potential lenders.
If you are considering filing for bankruptcy and want to ensure you are set up for success in the aftermath, you need to speak with a competent Cook County tax attorney who can walk you through the process step by step. Call the Law Offices of Eric G. Zelazny today at 708-888-2299 for a personal consultation.