Getting a Loan After Chapter 7 Bankruptcy in Casa Grande AZ
Most debtors choose Chapter 7 in Casa Grande AZ to relieve them from debts. Chapter 7 bankruptcy is a liquidation proceeding which requires debtors to sell non-exempt assets. A trustee converts the assets to cash and sells them. The money from the sell of assets goes to creditors. If you have filed bankruptcy, you may find that getting a loan can be difficult. Removing a Chapter 7 bankruptcy from your credit report can take seven to ten years. However, there are ways to increase your chances of getting approved for loan after bankruptcy.
You must wait until you get your discharge. A discharge from a Chapter 7 bankruptcy takes four to six months. No lender will approve you before a discharge. The reason is the new loan could be added to the case. Try not to get back in debt. Live within you means because and pay off non-exempt debts. After a bankruptcy, it is kind of like being on probation. Don’t apply for loans until you have lowered your debt to income ratio. Be patient. It is ideal if you wait at least six months before getting a loan. Applying for a loan soon after bankruptcy may make you look desperate. Waiting also gives you time to raise your credit score.
Your credit report is something you will want to watch after bankruptcy. If you keep paying debts on time, it will go up. You are entitled to a free credit report by law from each of three major credit bureaus. This allows you to check your score every four months. One mistake can cause your application to be denied so dispute any errors immediately. You will perhaps have an easier time getting a secured loan rather than an unsecured loan. A secured loan requires a deposit to be made, but the rates will be lower. This gives the lender added security especially if a borrower has bad credit.
Getting a loan after Chapter 7 in Casa Grande is not impossible. It just takes some work and patience. However, keep in mind the interest on these loans will not be low so you have to compare offers. In time, you will soon be alt to get a loan for anything you want. Click here for more details.