There are a lot of people who see bankruptcy as a simple way of getting out of debt and getting an easy new beginning. Though there are circumstances where bankruptcy is the only option, be sure you've weighed the consequences if it's something you're considering.
It's almost inevitable that there will still be circumstances in which you'll need or want some form of credit. Renting a car, purchasing a home or even just renting an apartment; these things are affected by your credit score and history, which suffers significantly after a bankruptcy claim.
When a lender is deciding whether to extend credit to an individual they will naturally look at the ability of the individual to make consistent payments. How much income and how much debt you have, your financial dependability, and past payment history are three good indicators they'll base that on, and with a bankruptcy listed on your report just about every finance company will consider you a high risk.
Your credit report can include info on your bankruptcy filing for up to 10 years after discharge. So while it's possible to secure credit following a Chapter 7 or 13, it can be very challenging in most cases. If (or when) you begin to re-establish your credit, you may still find yourself paying "high-risk" interest rates on anything from home loans to credit cards.
Buying a Home:
Although it's possible to get a mortgage after claiming bankruptcy, it's highley unlikely without a fair bit of time having passed.
Private lenders will put the borrower under a microscope, and even if you get accepted your rates will be much higher then a person without a bankruptcy claim on record.
FHA loans normally require the borrower has waited for at least two years after filing, and has established and kept in good standing 2 other credit accounts since. VA loans typically need a 2-year period of good credit after discharge as well.
