The Riverside bankruptcy lawyers at De Novo Law Firm have helped hundred eliminate their debt through bankruptcy. In a recent statistical report gathered by the United States Courts System, there were as many as 16,025 bankruptcies filed by individuals and businesses in Southern California during 2012. These cases included both Chapters 7 and 13 bankruptcies. Although filing for either chapters of bankruptcy gives you the chance to put a stop to having so much debt to be paid off, it does come with some negative consequences. One of these comes in the form of your credit score. Credit scores are often used to determine if the individual has a good reputation for paying off debts and if he or she can be trusted with loans, employment, insurance policies and a car or house payments. Good credit scores are considered to be around 720 or above. Unfortunately, if you decide to file for either chapter of bankruptcy, your credit score may drop. However, the effect may be temporary and may lead to a better credit score in the long term.
Many people ask whether they can buy a car or a house after filing bankruptcy. It’s possible to buy a car anytime after your bankruptcy but it is recommended that you wait about 18 to 24 months in order to get your best terms. If you decide to go ahead with the purchase, it may be difficult to get a reasonable interest rate or loan terms due to the bankruptcy. The best way to get approved is to show that you are now able to pay off debts and loans and have a reliable income to do so. You can also use a cosigner to boost your damaged credit score, but be sure to remove them once you are able to get a loan by yourself.
What if you want to buy a home after filing for bankruptcy? Generally, HUD guideline require two years before you will qualify to buy a loan. You may be able to get a private loan but the terms may not be competitive. After two years, interest rates will improve and payments will be more reasonable. If you have struggling with some of the same questions, contact the Riverside bankruptcy attorney at De Novo Law Firm. We offer free bankruptcy consultations and may be able to give you a variety of options. We can be reached at (951) 801-5570 and can help all residents of Southern California including Riverside, Corona, San Diego, Los Angeles, Anaheim, Santa Ana, Ranchch Cucamonga, and Norco.