You can file Chapter 7 every eight years, but a Chapter 13 is a type of repayment plan that may or may not result in settling up outstanding debts. Depending on which one you filed determines how soon you can rebuild your credit score and your installment lending options. Let’s take a minute to consider some of the details to help you get the best deal for you efforts.
Calm Down And Overcome Embarrassment
Bankruptcy no longer carries the guilt of shame like it did many years ago. Mostly due to so many families being hit by a lengthy recession and even slower recovery of the economy. The important thing is you survived and now it is time to finish getting back on your feet.
A current credit report starts you off with a clean list of those debtors still listed on your history. It is also proof of the debts that are not on your history. If you are still waiting for your case dismissal or discharge, brace yourself when it comes time to discuss interest rates. Most likely you will pay a higher interest rate.
Plan Your Strategy For Success
Now that you have a job, you already have provable income, and a list of monthly expenses that show if you paid on time. It helps if you managed to put some money in a savings account along the way to use as a down payment. Refer to your list of monthly bills, including insurance premiums, because you must carry Liability insurance on the car you buy.
Even lenders of high risk investments have competitive rates but keep in mind that the lowest of these will still be higher than you had. Some times they have special deals that include Liability insurance. This means only one payment to cover both bills.
Apply For An Installment Loan
Now comes the time to fill out an application for an installment loan. Be truthful about all the details including your Bankruptcy. Your loan hinges on your current ability to repay the debt, not on the past when things were tough and you and your family couldn’t make ends meet.
It is possible to get an installment loan immediately after your case the dismissal or discharge of your Bankruptcy. As you see now, there are some factors that you must attend before getting approval but in most cases you can borrow based on your current income and ability to repay.