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Difference between revisions of "Assignments in Bankruptcy"
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Assignments in Bankruptcy (view source)
Revision as of 23:44, 16 September 2018
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Creditors will often warn that no bankrupt will ever get credit again. This is an exaggeration. There is no law that says that people who have gone through bankruptcy should not have credit. | Creditors will often warn that no bankrupt will ever get credit again. This is an exaggeration. There is no law that says that people who have gone through bankruptcy should not have credit. | ||
Bankruptcy does affect the debtor’s credit rating (see section on Credit Reports and Credit Ratings). A record of a person’s first bankruptcy can be kept on the debtor’s credit report for six years after their discharge from bankruptcy. This does not mean that the person cannot get credit for six years; it means only that any potential creditor who requests the debtor’s credit report will be aware of the fact of their bankruptcy. | Bankruptcy does affect the debtor’s credit rating (see section on [[Credit Reports and Credit Ratings]]). A record of a person’s first bankruptcy can be kept on the debtor’s credit report for six years after their discharge from bankruptcy. This does not mean that the person cannot get credit for six years; it means only that any potential creditor who requests the debtor’s credit report will be aware of the fact of their bankruptcy. | ||
It is probably true that if creditors are aware of a person’s recent bankruptcy, consumer or mortgage credit may be refused, particularly if the creditor is a bank. It may be somewhat easier to obtain credit from a creditor who is also a seller financing a sale and getting a security agreement for the item sold. Thus, for example, it may not be too difficult to buy an inexpensive car on credit (assuming a debtor decides they absolutely need to buy on credit after a bankruptcy experience). | It is probably true that if creditors are aware of a person’s recent bankruptcy, consumer or mortgage credit may be refused, particularly if the creditor is a bank. It may be somewhat easier to obtain credit from a creditor who is also a seller financing a sale and getting a security agreement for the item sold. Thus, for example, it may not be too difficult to buy an inexpensive car on credit (assuming a debtor decides they absolutely need to buy on credit after a bankruptcy experience). | ||
