It used to be really difficult to get credit after bankruptcy but a lot of things have changed dramatically over the past decade or two. Once someone has been discharged from the bankruptcy they are just like anybody else in the world who wanted credit, in that they will have to do things to slowly rebuild their credit. They will do things such as a secured credit card; putting $300-$500 into an account with the bank, which secures the account, and using the card occasionally for small purchases and paying it off every month. Eventually they will graduate to store credit cards and eventually they will see better interest rates on car loans and then, after that, they can get regular credit cards.
In terms of whether someone can get a home loan after bankruptcy, the answer is yes is two years after the discharge is entered and after having two years of working hard and rebuilding their credit. The real issue is did the consumer do what they needed to do to get their credit score high enough. Getting there takes hard work and dedication and knowing how to do the right things. A lot of my clients who filed for bankruptcy two years before have better credit after their bankruptcy than they ever had previously; it just comes down to what someone is willing to do to rebuild their credit; the opportunities are there and people should take advantage of them.
Can Someone Obtain Credit While They Are Under The Chapter 13 Plan?
People cannot normally get credit under a chapter 13, it tends to be very difficult with an open bankruptcy, because lenders and grantors of credit generally will not loan them money. If someone wanted to get a car loan and found someone willing to finance them, the debtor would have to file a motion with the court for approval, and the court will generally approve the request as long as the person can demonstrate to the court the ability to make that new monthly payment.
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