March 23, 2018

How long before I can apply for a mortgage or credit card?

Bankruptcy stays on your credit report for 10 years. It becomes less significant the further in the past the bankruptcy is. The truth is that you are probably a better credit risk after bankruptcy than before.

A number of banks now offer ‘secured’ credit cards where a debtor puts up a certain amount of money in an account at the bank to guarantee payment. Under current underwriting standards, two years after a bankruptcy discharge debtors are eligible for mortgage loans on terms as good as those of others with the same financial profile who have not filed bankruptcy. The size of your down payment along with the stability of your income will be much more important than the fact you filed bankruptcy in the past.

I hope I have answered some of your questions. If you would like more information or wish to set up a free initial consultation with me, you may call one of our offices at the numbers noted above.