Bankruptcy allows one to eliminate most of his or her debt, and it also allows one to obtain a “clean slate” as reported by Wicked Local Norwood in a May 19, 2013 article.

When people file for bankruptcy, most people are worried about obtaining a loan  after the bankruptcy is filed,  which will be used to buy or finance property. Obtaining a loan after filing for bankruptcy, might be feasible to “demonstrate financial responsibility.” After one files for bankruptcy and obtains a discharge from the court, one should wait a few years before trying to get a loan to finance property. This will show that one is not rushing into something that he or she might be able to manage his or her financial bills.

Also, one needs to try and rebuild  his or her credit before obtaining a loan. This can be done by charging  small items and repaying the debt owed in a timely manner. This will show that one is responsible, and that one is unable to keep up with the monthly payments. In addition, one should try to avoid acquiring debt if he or she does not have the resources to repay the debt; one should only buy what he or she needs as this will prevent unnecessary debt.

Once one is able to rebuild his or her credit after filing for and obtaining a discharge in bankruptcy, then he or she has a greater chance of obtaining a loan to finance property.

Let us help you demystify bankruptcy with a free consultation with Jayson Lutzky. Mr. Lutzky is an attorney with 30 years of experience practicing law. He offers free in person consultations. His office is known for its warm, personal atmosphere. Call 1-718-514-6619 or visit www.MyNewYorkCityLawyer.com for more information about personal bankruptcies.