How Bankruptcy Affects Your Ability to Get a Future Loan
Bankruptcy not only impacts the present state of your finances, but it can also have a significant impact on your future. This is especially true concerning your credit score and chances of getting approved for a loan or mortgage in the months and year ahead. Although both Chapter 7 and Chapter 13 bankruptcy are effective ways of achieving debt forgiveness, they both can have an effect on your credit score. However, this does not prevent you from being able to get loans and slowly improving your credit score in the years after filing for bankruptcy.
Whether you want to purchase a home, an automobile, or start a business, you may need to apply for a loan or mortgage. For more information about filing for bankruptcy and how it will impact your future, contact a Cedar Rapids bankruptcy lawyer of Hong Law, PLC, today at (319) 294-5853 and schedule a free consultation.
Can I Get a Loan after Bankruptcy?
Even though bankruptcy does have a major impact on your credit score, it does not eliminate your chances at qualifying for a loan. However, this doesn’t mean you will not face a number of challenges you wouldn’t normally have to face with a clean credit score. Some of these challenges include the following:
- Facing a higher interest rate
- Longer waiting periods
- Higher amount required upfront on loan or mortgage
- Proof of financial stability
After bankruptcy, it is crucial that you make sure you make all loan payments on time and in full to prevent falling into financial difficulties a second time.
At Hong Law, PLC, we are committed to helping you get through this financially trying time with as little resistance as possible. Contact a Cedar Rapids bankruptcy attorney at (319) 294-5853 to discuss your particular situation.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office