A commonly asked question is, “Is it possible to get financing even after bankruptcy?” In most cases, you will be able to get financing after bankruptcy – however, there are some conditions and things you need to be aware of.

Most people think that they will not be able to get credit for 10 years after filing for bankruptcy. This is a myth. You will get offers for loans and credit cards after filing for bankruptcy. However, they will probably either have very high interest rates or require collateral, since you are considered a risky borrower in the eyes of the lender (due to your past bankruptcy).

Until your bankruptcy is discharged, you will likely receive financing offers (cars, loans, credit cards) immediately with very high interest rates. If you want those interest rates lowered, you will need to work on rebuilding your credit. Rebuilding your credit after bankruptcy is crucial if you hope to get financing with low interest rates and good terms.

A common question we get is whether or not a person can ever get a home after filing for bankruptcy. You can get financing on a home after bankruptcy, assuming you have re-established a good track record of on-time payments. You can usually qualify for financing on a home as early as 18-24 months after your bankruptcy has been discharged.

Nothing that appears on your credit record is “forever.” Circumstances change, and you can always overcome your past financial troubles. After your bankruptcy is dismissed, consider getting a secured credit card (which works like a debit card) to start re-establishing a good credit history. Living on a cash-only basis may be a good idea for people who can’t handle the temptation of credit cards. However, if you want to re-establish a good credit score (and qualify for financing in the future), you will need to participate in the credit system. Start by opening a secured credit card, which will prevent you from spending more than you have.