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Credit After Bankruptcy

It has become much easier to obtain credit after bankruptcy

"But will I ever be able to get credit again?" This is one of the most frequently asked questions that our consumer bankruptcy clients ask us. This led Craig D. Robins, Esq. to write a column for the Suffolk Lawyer newspaper about life after bankruptcy.

Many people believe that for ten years, a bankruptcy filing will make it more difficult to qualify for a credit card, get a car loan, or buy a house. However, that is a myth perpetuated by credit card companies and bill collectors. A bankruptcy filing is often the first step in repairing a bad credit score. Most people considering bankruptcy are already in financial trouble and cannot do anything to make their credit score worse.

At the Law Offices of Craig D. Robins, Esq., we have over 20 years of experience in helping people from Long Island eliminate debts with bankruptcy, and showing them how this can lead to rebuilding and rehabilitating their credit. Many of our clients get new credit after bankruptcy.

Credit card companies will want to give you cards after a bankruptcy

Most people who file for bankruptcy are actually solicited for credit cards after their cases are over, according to a recent study done by a law school professor. The reason is several-fold:

• Those emerging from bankruptcy will have eliminated most or all of their consumer debts, thereby increasing their debt-to-income ratio. Thus, according to the credit card companies, these people can now easily afford new debt.

• You can only file for Chapter 7 bankruptcy once every eight years. That means that someone who has just finished a bankruptcy proceeding cannot easily run back to bankruptcy court again for quite a while. Thus, credit card companies have greater rights with someone coming out of bankruptcy than they would have against someone who never filed.

• Credit card companies have learned that debtors emerging from bankruptcy are lucrative targets for additional business meaning additional profits for them. Thus, once a debtor's bankruptcy case is over, they are likely to become a perfect candidate for new credit.

Some debtors can get mortgages a year or two after filing bankruptcy

Many people emerging from bankruptcy have been able to obtain conventional mortgages at reasonable rates of interest just a year or two after their case was finished.

Having a large amount of credit card debt will often preclude someone from mortgage eligibility. It is much easier to qualify for a mortgage if typical consumer debt is very low. Bankruptcy will eliminate most or all consumer debt. Although a bankruptcy filing is considered a negative factor on a credit report, it becomes less and less important after time. Thus, by the time a bankruptcy filer is ready to purchase a home, the fact that they filed will have much less impact, if any at all.

We help you get a fresh new financial start

Contact our office today to learn how we can assist you with your debt problems. Call now to schedule a free, confidential consultation at one of our convenient offices.

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For over Twenty Years, we have proudly been a Debt Relief Agency under the
United States Bankruptcy Code. We help people file for bankruptcy relief.

Copyright © Craig D. Robins - Craig D. Robins is a Melville, Long Island bankruptcy attorney and lawyer whose New York bankruptcy law firm is dedicated solely to bankruptcy law and debt solutions. We represent clients from towns such as Huntington, Smithtown, Babylon, Islip, Hempstead, Brookhaven, North Hempstead, and Riverhead; and areas including Amityville, Bethpage, Brentwood, Centereach, East Meadow, Hicksville, Holbrook, Levittown, Mineola, Patchogue, Shirley, Westbury, Medford, Coram, Commack, Bayshore, Yaphank, Valley Stream, Bohemia, Wantagh, Roosevelt, Freeport, Deer Park, Floral Park, Franklin Square, Bellmore, Mineola, Elmont, Laurelton, Queens Village, and others on Long Island and Queens. Some of the material herein constitutes attorney advertising.