Your financial situation can be tough when you file for bankruptcy. And one of the questions our bankruptcy law attorney in Van Nuys gets to answer from our clients is if they can still obtain credit.
Bankruptcy Law Attorney in Van Nuys Recommendations on Obtaining Credit
Filing a loan while you are still within the limitations of bankruptcy case can be difficult. But it is still possible.
To make it possible, though, you need to get approval from the court. Furthermore, you must be current on your plan payments.
If you wish to obtain credit during your case, you must consult our experienced lawyer in Van Nuys. We can explain your situation so you can better understand how you can obtain credit during these difficult times.
You should remember, though, that when you filed for bankruptcy, you cannot get approved for credit. But you can do so if it is a special circumstance.
For example, if you visit a healthcare professional to undergo treatment and get a bill at a later time, it is considered a new credit.
Can You Buy a New Car
You can also purchase a new car at this time. But it is tough to get a loan from a conventional lender. However, there are lenders who cater specifically to people who filed bankruptcy.
Although they are rare to find, they do exist. And when you find one and get approved, you must understand that the lender will give you a high-interest rate. Thus, make sure that you are ready to pay for it.
But we recommend taking public transportation, rather than purchase a new car. Or you may choose to buy a second-hand vehicle.
Remember that you are still under the bankruptcy code and you are still paying your debt. Adding more debts will not help you get through the bankruptcy.
It is ideal to sacrifice your urge to get a new car. If a car is really necessary for your situation, then you should consider a second-hand vehicle that you can afford to pay.
Getting Credit Cards
You can still get a new credit card while your case is ongoing. It may help you in rebuilding your credit. However, you must be mindful of what you buy using your credit card.
Make sure that you only use your card for necessary items. Do not purchase jewelry, expensive clothes, bags, gadgets and other things that are not “needs.” If you think that the items are a “want,” you should not buy it. Remember that you still have a debt to pay.
You will need permission to incur more debts during bankruptcy. However, small debts may not require the court’s approval.
You need to talk to our attorney to know whether your “small debts” are not part of your case.
Before you obtain credit, make sure to consult with our bankruptcy law attorney in Van Nuys. Our lawyers will review your situation first before recommending that you can obtain credit. But, as much as possible, you should not incur additional debts during bankruptcy. It is for your own good. Give us a call for more guidance and help (949) 565-4707 or (818) 960-6460.