Disadvantages of Bankruptcy
You may have to pay a slightly higher interest rate for the purchase of a car purchased immediately after filing for bankruptcy. This is only because banks are able to do so. They want to charge a higher interest rate in case you are a credit risk in your future.
As you make payments on time, you may qualify to refinance your car loan into a lower interest rate. As time goes on and you responsibly rebuild your credit, you will soon not have to pay any additional interest on car loans in the future.
You may also have to wait about six months to two years after a bankruptcy discharge to purchase a home. This is because mortgage lenders want to see how well you do with your new credit after bankruptcy.
We have seen that these are small prices to pay for the tremendous benefits of wiping out your debts.
Lee Abt is an Experienced Bankruptcy Atorney in New Jersey - Call Today!