How does bankruptcy affect my creditworthiness?
July 21, 2022 | 30,00 EUR | answered by Emma Fischer
Dear Sir or Madam,
My name is Norbert Ley and I am currently facing a difficult situation that is causing me great concern. Some time ago, I had to file for bankruptcy as my company ran into financial difficulties. Now I am wondering how this bankruptcy will affect my creditworthiness.
I have always paid my bills on time and had a good credit rating. However, I am now concerned that my bankruptcy could significantly impact my creditworthiness. I am worried that I may not be able to get a loan in the future or only at much worse terms.
Could you please explain to me how a bankruptcy affects my creditworthiness? Are there ways to improve my credit rating again? What steps can I take to increase my chances of getting a loan in the future?
Thank you in advance for your help and advice in this difficult situation.
Sincerely,
Norbert Ley
Dear Mr. Ley,
Thank you for your inquiry and your trust in my expertise in insolvency law. It is understandable that you are concerned about your creditworthiness, especially after having to file for insolvency. Insolvency can indeed have an impact on your credit rating, as it is usually noted in the SCHUFA and other credit agencies.
Insolvency typically remains visible in the SCHUFA report for three years after the conclusion of the insolvency proceedings. During this time, it may be difficult to obtain a new loan, as banks and other lenders assess your creditworthiness based on this information. Therefore, it is possible that you may either not be able to get a loan at all or only under significantly unfavorable conditions.
To improve your creditworthiness, it is important that you handle your finances responsibly. This means paying your bills on time, reducing your debts, and presenting your financial situation transparently. It may also be helpful to build a positive credit history, for example through a small installment loan or a credit card with a low limit that you regularly use.
It is also advisable to regularly check your SCHUFA report and ensure that all entries are correct. If there are errors, you can have them corrected to avoid unnecessarily affecting your credit rating.
Additionally, you can also approach banks that specialize in lending to individuals with lower creditworthiness. These banks often offer loans at slightly higher interest rates, but can still provide you with a financing option.
In conclusion, I want to emphasize that it is possible to improve your creditworthiness after insolvency. However, it requires patience, discipline, and responsible handling of your finances. I am available to support you in this process and answer any further questions you may have.
Best regards,
Emma Fischer
