Birmingham, AL Law Firm Lead Clients Through Bankruptcy

Alabama Bankruptcy Attorneys Allow Debtors to See the Light at the End of the Tunnel

Although bankruptcy offers a fresh start for many, there are some common limitations that may be encountered post-bankruptcy:

• Difficulty renting an apartment. During the first couple of years after a bankruptcy, renting an apartment can prove to be challenging. Many professionally-managed apartment complexes refuse to rent to those with a history of bankruptcy, and if they do, they will sometimes require extra fees or demand several months of rent upfront.
• Getting approved for a mortgage. The odds of obtaining a traditional mortgage generally improve three to four years after filing bankruptcy, but you might still encounter higher interest rates and larger down payment requirements. However, FHA and VA mortgage loans are usually available two years after a chapter 7 discharge and just one year after a chapter 13 discharge.
• Applying for credit. Traditional credit cards might not be an option for several years, but you should apply for a secured credit card, which utilizes a refundable safety deposit as your credit line – if you deposit $100, you will receive credit in the same amount. After at least one year of on-time payments on your secured card, you will likely begin to receive offers to apply for traditional cards.
• Opening a business. Although nobody can stop you from starting a business after bankruptcy, you will probably find it extremely challenging to secure financing. Banks and other lenders are usually reluctant to offer loans to those who have filed for bankruptcy in the past, but some sub-prime lenders offer collateralized loans secured by an asset you own, such as your car. However, these loans often come with high interest rates and other risks.
• Securing employment. Many employers run background checks on prospective employees, and a prior bankruptcy won’t necessarily prevent you from getting hired, unless you’re trying to find employment in finance, accounting, or any role that requires money or financial management. However, a history of bankruptcy will generally be viewed negatively, so you should have a response prepared for questions about it.

Contact an Experienced Birmingham, AL Bankruptcy Lawyer

Are you wondering what your life will be like post-bankruptcy? Contact the Birmingham bankruptcy lawyers at the Bond & Botes Law Offices online or call 1-877-581-3396 to schedule your free initial consultation with an experienced Alabama bankruptcy lawyer today.