It is a GREAT question: If you file for bankruptcy, how long will your credit rating suffer? There is no escaping that there will be a black mark on your credit report for up to 10 years following the discharge of your bankruptcy. But, just like any other black mark on your credit report, it is up to each individual creditor whether or not to extend you credit. Filing a bankruptcy does not mean that your life after bankruptcy will mean living in rundown apartments, driving junker cars and living hand-to-mouth for a decade.

Most people receive offers for credit cards within a month after filing bankruptcy. You can get a vehicle loan once your discharge is entered and Fannie Mae and Freddie Mac allow new mortgages as early as a year after filing a bankruptcy. I can show you strategies for credit repair that will help you move forward with very little damage to your financial future.

Think of it this way: You don’t have a credit problem right now. The issue is not who will lend you money, the issue is how to deal with the debt that you cannot pay. You do not have a credit problem, you have a debt problem. So, the debt is the thing to focus on. But, yes, there is life after bankruptcy. Banks and other creditors know that if you are freed up from your debts, then you are far more likely to make your next loan payments on time. They also know that you can’t file for another bankruptcy under Chapter 7 within eight years of filing the current bankruptcy. It makes you a much better credit risk.

Ask yourself who you would loan money to — a person who may have a high credit score but owes most of his or her paycheck to creditors each month? Or someone with a lower credit score, but who owes little or no debt? That black mark on your credit rating suddenly makes you a much better bet for repaying the money, doesn’t it?

While it is true you aren’t likely to get prime interest rates for a few years, most people find that they are accepted for all types of loans within one year of their discharge. Even if you decide to give up your house in the bankruptcy, the government-backed mortgage programs Fanny Mae and Freddy Mac will allow you to get a mortgage in as little as one year after filing.

The credit card companies are counting on people believing the myths about bankruptcy. The truth is, your life after bankruptcy will be brighter, as you shed the worry and get the fresh start you need. Bankruptcy offers you a chance to start over, but you must call to get the ball rolling. I am an experienced bankruptcy attorney, and I am ready to help.


Watch my videos and read my articles to learn more about ways bankruptcy can help.

No matter where you reside or operate a small business in the Hawaiian Islands, call or send an email to my office in Honolulu to schedule a free initial consultation. I will explain your options and help you see a brighter tomorrow.