Filing bankruptcy does not mark the end of your ability borrow money in the future. Instead, it is the end of sleepless nights, stress and fights caused by your debt problems.
Many people that I see for a bankruptcy consultation that ask this question usually are NOT in a situation to buy a house or car. Sometimes, I ask if they are in a position now to buy a house or car. In order to set the stage for answering this question, I may also ask them this: “If you DO NOT file bankruptcy, then when and how will you ever get your debt problems under control to the point that you will be able to buy a house or car?” As we all know, if you’re having debt problems, then buying a house or car is VERY DIFFICULT.
In contrast, it is MUCH EASIER to buy a house or car on credit after you get debt free. But what about the bankruptcy on your credit? Well, it shows that you no longer have the unpaid debt that gave you so much trouble. Consider this: who is more creditworthy? A person with a lot of unpaid debt or someone with no debt?
Here are some questions that you should be asking:
- What is the best way for me to get debt free?
- How long is it going to take me to get debt free?
- After I get debt free, how long will it take me to save a $1,000 “Emergency Fund” so that I can avoid debt problems in the event I run into some unforeseen expenses?
- After I have created an “Emergency Fund,” how long will it take for me to save enough for a down payment for the house or car?
- What are some ways that I can increase my income so that I can afford the new car payment or house payment?
