Your main should be rebuilding credit after bankruptcy. Until all your debts are clear, you cannot obtain any loan. Find out what you can and cannot do after bankruptcy.

Buying a home

Once you file for bankruptcy, you have to wait for a specified period (4-2 years) before you can apply for a mortgage loan. Note that your credit scores have to be considered no matter the period that has passed since your discharge. It might take you years to credit cards after bankruptcy to attain the minimum credit score (about 620 – 680) for mortgage loan application. Without good credit, it’s better off to wait before buying a home because the cost of the loan would be too high. If you must obtain a mortgage loan with poor scores, make sure that the house is very affordable and be sure to keep some emergency finances.

Buying a car

After bankruptcy, you might want to purchase a car, but it’s not easy to get a car loan. If you are lucky to get one, the interest rates would be too high to bear. Make sure you understand how to rebuild credit after bankruptcy and the effects of your credit scores on your installments. A high score can be charged 3% interest rate, but a low score can have as high as 17% interest rate. You don’t want to pay tripled interests over a period of 3 years or so. If you need a car after discharge, look for a cheap and used one. Remember that a new auto loan can help you build your credit if you pay it on time every month. If you don’t default on payments, the interest rate might even be lower for your future.

Conclusion

After bankruptcy, you cannot afford to live an extravagant lifestyle. It means you have to change your expenditure patterns such as how much you spend every month on clothes, shoes, recreation, and rent. Avoid debts at all cost and only get loans with the permission from the court. It will take a lot of discipline, but in the end, you will get back on your feet on the financially stable ground. But don’t forget that the bankruptcy filing status will stay on your credit card for 7 – 10 years.