Falling short on funds puts one in an awkward situation, especially where you can’t afford to pay your debts on time. Many people believe that filing for bankruptcy will deny them access to future loans, at least for the next ten years or so, but that is not the case. You can still qualify for loans and other types of debts, but the terms of the agreement may not be what you had at first. For this reason, you need a word of advice from a top-rated bankruptcy attorney to get more familiar with the new interest rates and new debt terms.
Filing for chapter 7 or chapter 13 bankruptcy ensures that your debt is better handled. It tells the creditors that you won’t be filing for bankruptcy again in the next 7-10 years, and so, the odds of receiving new debts remain in your favor. In response, the creditor may impose higher interest rates on the new loan and perhaps alter the downpayment terms.
Filing for bankruptcy relieves you from the debt. However, your credit score may take a direct hit. Filing a Chapter 7 bankruptcy remains in the credit reports for at least 10 years from the filing date. On the other hand, filing a Chapter 13 bankruptcy stays on your credit report for at least 7 years.
No matter what route you take, creditors will be able to access these records and use them in their decision-making. It takes a legal process to get the debts discharged but remember, your lenders may fail to approve your application until you complete the legal process. You may also face challenges when applying for other loan types. Other lenders may approve your application under strict, unfavorable terms and higher interest rates.
On most occasions, your credit score will be critically reviewed by the prospective creditor. Therefore, you need to keep it clean and attractive for your application to be approved after filing a Chapter 7 or Chapter 13 Bankruptcy. Fortunately, there are several ways to improve your credit score as follows:
Navigating the legal realm alone may not be as easy as it seems, especially if you’re new to the jargon and legal procedures involved. Whether you’re filing for bankruptcy under chapter 7 or chapter 13, you need an attorney who knows what needs to be done. Feel free to check out our services at https://azbankruptcysolutions.com/mesa and get in touch with us for legal assistance.
Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr
Mesa AZ 85204
Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.