Filing for bankruptcy protection is something we hope we never have to do. For most people, bankruptcy is the last option, only after all other options have failed. Many events in life can cause a person to consider filing for bankruptcy, such as health or unemployment issues, the end of a relationship, a failed business or a failed investment.
No matter why you find yourself in bankruptcy, there is hope for the future. Recovery from insolvency is possible.
Credit scores can rebound within a year or two, but usually not to the level that would attract good financing.
You can apply for credit as soon as your bankruptcy is filed, even before your case is completed. However, the decision whether to grant you credit in the future is strictly up to the creditor and creditors are not required to extend you credit. Credit obtained during and shortly after bankruptcy usually comes with unfavorable terms.
You should expect that obtaining a loan will be difficult for the next three to five years after filing for bankruptcy protection. Also, a bankruptcy will remain a negative mark on your credit history for up to ten years.
Sometimes, issues need to be addressed after bankruptcy, such as discharging judgment liens.