There is a downside to consider in a bankruptcy filing. Getting a loan after filing bankruptcy will not be as easy as before you went in to file bankruptcy. Also it depends on what kind of loan an individual is trying to get to see just how difficult the process can be. Once the discharge of a Chapter 7 or Chapter 13 bankruptcy has been granted, the debtor must reestablish their credit, and the first step to this would probably be to get a secured credit card. A secured credit card is given by the bank, and is secured by whatever amount of money the cardholder deposits in the bank account for that purpose. The charges on the card are limited to the amount that is deposited, which will stop running up too much debt again, but allows the positive credit experience to be reflected on one’s credit report. This first step will help make the debtor eligible for alone in the future.
One of the consequences of a bankruptcy filing is that if the person who filed wishes to buy a house in the future, usually there will be around a two-year wait after the Chapter 7 case was discharged before a lender would even look at the application for a home loan. When an individual files or Chapter 13 bankruptcy case the individual will not be able to apply for credit without permission of the court and tell 24 months after all their debts are paid off in full. During the two year window in both cases, the debtor will have to be consistently employed to show stability.