Legal Question in Bankruptcy in Virginia
Bankruptcy
My husband tried starting his own business and invested a great deal of money. Unfortunately it never got off the ground and he hasn't had an income for almost a year now. We used up all of our savings and we have consolidated some of our debt (the agreed upon fee is still VERY high) but because we only have one income, our debt is about $80,000. if we declared banckruptcy or had the cars repossessed, how long would we have to wait before we could get credit again? would we be able to buy a house in 3 years?
3 Answers from Attorneys
Re: Bankruptcy
Credit is often available pretty quickly, and as far as buying a house, the answer is yes, but you may pay a higher rate.
Re: Bankruptcy
You should be able to rebuild credit and buy a home a good place to start is read "Bounce Back from Bankruptcy". You can find the book on Amazon.com. First retain an experienced bankruptcy attorney to handle your case. You can contact my office if you are interested.
Re: Bankruptcy
Stricly speaking the bankruptcy will stay on your credit for 10 years (if you file a chapter 7). However, you can receive credit cards fairly soon afterwards but you'll need to start off with secured credit cards (you deposit the money with the creditor and they will extend that amount to you in credit). This is a good way of starting to reform your credit. Automobiles are pretty easy to get after bankruptcy but you will pay a higher interest rate. The rule of thumb for a house is to wait at least one year! You will still have a higher interest rate but at least you'll have a house.
Speak with an experienced attorney in bankruptcy. He or she will be able to inform you of ways following bankruptcy to improve your credit. If the attorney can't give you that advice. DON'T HIRE THEM!
If I can be of further help, please do not hesitate to contact me at either my Fairfax, Virginia office at 703-968-3974 or my Maryland office at 301-652-0663. Best of luck to you.
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