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New Mexico Lawyers Serving New Mexico's Legal Needs Since 1997

Recovering from bankruptcy

When you are thinking about filing for bankruptcy, you may find yourself wondering about what the long-term impact will be. You might worry you won’t ever be able to have a credit card, buy a new car or get a mortgage. Thankfully, these worries are unfounded. All of these things are possible following a Chapter 7 or Chapter 13 bankruptcy filing.

It will take time and patience, but it is possible to use bankruptcy as the first step not only towards recovery from a negative financial past, but into a brighter financial future.

Getting a mortgage

One of the most common questions that bankruptcy lawyers see involves eligibility for a future mortgage following a filing. Yes, you can still qualify for a mortgage, and it will likely take less time than you think. Many debtors can secure a new mortgage or a refinance just a few years after a filing. Most traditional mortgages can be obtained three years after a bankruptcy discharge, while V.A. loans can be obtained two years after a bankruptcy discharge. Bankruptcy absolutely does not disqualify you from buying a home.

Buying a car

Immediately after a bankruptcy filing, you may be able to finance a new or used vehicle, and many debtors receive offers in the mail during their bankruptcy case. The interest rate will obviously not be ideal at that time, however. As debtors rebuild their credit, they will be able to obtain better interest rates.  

Getting a new credit card

A secured credit card – one backed by a deposit and capped by the amount of deposited funds available – is usually an option a year or less following a bankruptcy. It is important to use any credit card responsibly, but since this one is actually tied directly to your own funds, there is very little risk for the lender. It is advised to use one to help rebuild your credit.

For answers to these and all other bankruptcy-related questions, speak with an experienced bankruptcy attorney in your area.

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