Due to changes in the law, however, you will have to wait four years to get a conventional loan. Suppose the person were self-employed, and there was a business slowdown. We would expect him or her not to be self-employed anymore and to have a salaried job with a steady paycheck. People who go bankrupt usually find themselves in a deep financial hole that they just can't dig out of. For most people, bankruptcy is related to an incident or situation, such as medical problems, a business slowdown, an anticipated promotion, raise or new job that didn't materialize, getting laid off, or an unexpected pregnancy.
Most people try to get out of debt before filing bankruptcy.
They may still be able to get a loan, but it will cost them. The loan will be for several points higher than for those whose bankruptcy was caused by circumstances beyond their control rather than a greedy desire to take advantage of the system. If you have declared bankruptcy, one of the first steps you will need to take toward restoring your credit is to get a secured credit card. This can be accomplished by starting a savings account with the bank issuing the credit card. The bank will issue you a credit card with a credit limit in the same amount of money that is in the savings account.