Many Americans considering Chapter 7 or Chapter 13 bankruptcy mistakenly believe that once they file bankruptcy that the doors to credit will be closed to them forever or at least for a long time to come. This myth couldn’t be farther from the truth. The truth of the matter is that many creditors immediately begin offering bankrupt debtors credit cards soon after their discharge.
Often, within month debtors emerging from a Chapter 7 bankruptcy or even in a Chapter 13 Bankruptcy receive credit card offers and are able to finance a car. Within a few years most debtors who have filed bankruptcy can purchase a home. It is simply not true that you need to wait seven years, or even 5 years before you can qualify for a home or car loan.
It is true that in today’s credit environment it is difficult to obtain credit no matter what your credit history and many Americans are finding their credit lines closed or drastically reduced. But on the other hand, lending institutions make their money by lending money and often see debtors who have filed bankruptcy as “good credit risks” because they have little or no debt after bankruptcy.