Life After Bankruptcy

Credit Reports

In most cases, your credit score will improve within a year of your successful bankruptcy discharge. Be certain to review your credit report to ensure that discharged creditors are no longer reporting to the credit reporting agencies. Contact your attorney if a creditor continues to report a debt even though the debt was listed and discharged in bankruptcy.


Liens survive bankruptcy unless they are striped or removed by the bankruptcy court. A lien is an ownership interest in your property by a creditor (such as a judgment lien, a mortgage lien, a car note, or any other type of loan whereby you listed your property as collateral in exchange for obtaining the loan).

Purchasing a Home

Purchasing a home requires cash.  Even though you may be taking out a loan in order to finance a home, you will need to use some of your own savings as well.  Most likely, you will need at least 10 percent of the total cost of the home.  In addition, you will have moving expenses and start-up expenses.  For example, a $100,000 purchase price will probably require at least $15,000 cash.  Bankruptcy allows you to get rid of your debts and begin the savings process.  In addition, having money in the bank and paying your bills on time will improve your credit score!

Purchasing a Vehicle

The mere fact that you received a discharge in bankruptcy will not preclude you from purchasing a vehicle for the next seven years. However, your interest rate may be higher because you have file for bankruptcy relief.