How to Buy a House After Bankruptcy

Are you thinking about filing for bankruptcy? Or have you recently filed for bankruptcy or received a discharge? The answer to these questions can become more complex when you are also thinking about your options for buying a house. Whether you are a first-time homebuyer or you have owned a home in the past—even if the house has been at risk of or has gone into foreclosure—the most important thing to know is that you can be eligible to buy a house after bankruptcy. To be clear, filing for bankruptcy and receiving a discharge does not mean that you will never be able to buy a house. While you will need to learn about certain waiting periods and rebuilding your credit, you should be hopeful about home ownership following your bankruptcy case.

A recent article in House Digest discusses the ins and outs of buying a house after filing for bankruptcy, and our Oak Park bankruptcy lawyers want to provide you with more information.

Know Bankruptcy Will Impact Your Credit But Will Not Prevent You from Buying a House in the Future

If you are planning to file for bankruptcy, it is important to know that it will impact your credit. However, many people hear myths about bankruptcy and wrongly believe that a bankruptcy case will permanently destroy their credit. While your credit will affect your credit, you will be able to rebuild your credit after your bankruptcy discharge.

In fact, if you want to buy a home after bankruptcy, you should begin looking into options for rebuilding your credit after your discharge. You may need to apply for a secured credit card, but soon you may be eligible for an unsecured credit card. It is critical to use the card regularly and to repay the balance in full each month. As time goes on, you will be eligible for additional credit and can rebuild your credit profile and credit score.

Know About the Waiting Times for Home Buying After a Bankruptcy

You should know that different types of bankruptcy and different types of mortgages will impact the amount of time you have to wait from your bankruptcy case to seeking a mortgage again. For some types of bankruptcies and mortgages, you could be eligible to buy a home just one or two years after your bankruptcy discharge. For other types of bankruptcy cases and loan types, you may need to wait longer.

For example, following a Chapter 13 discharge, you may be eligible for a Federal Housing Administration (FHA) loan just one year after filing for bankruptcy. Debtors who file for Chapter 7 bankruptcy can be eligible for an FHA loan two years following their discharge. Veterans Administration (VA) loans often have a two-year waiting period. Conventional loans may require a longer waiting period, from two to four years, depending upon the particular circumstances. To determine your specific waiting period, you should speak with a lawyer.

Contact Bankruptcy Attorney in Oak Park

Whether you have general questions about the bankruptcy process or you need help with questions about bankruptcy and home ownership, one of our experienced Oak Park consumer bankruptcy attorneys can speak with you today. Do not hesitate to reach out to us to learn more about the legal services we provide to consumers in Illinois. Contact the Emerson Law Firm to ask your questions and find out about your options.

See Related Blog Posts:

Learning About Recent Consumer Bankruptcy Trends

Get an Overview of Consumer Bankruptcy

Comments

Post a Comment

Popular posts from this blog

Phantom Debt Collection Scams on the Rise in Illinois

Have you been contacted by a person claiming to be a debt collector who is seeking to recover a debt you allegedly owe? If so, you are not alone. According to a recent report from CBS Chicago , such parties claiming to be debt collectors are on the rise, and they are scamming Chicago-area residents. These alleged debt collectors are part of schemes known as “phantom debt collection scams,” since they involve the attempt to collect on a debt that the consumer does not actually owe. How can you avoid becoming a victim in a debt-collection scam ? What should you do if you have been targeted by a fake debt collector? How Do Phantom Debt Collection Scams Work? Now, you might be thinking to yourself: I would never agree to make payment on a debt that I did not owe. But the scam is not always that simple. Parties at the center of debt-collection scams often target consumers who do actually owe debts (to someone or to some entity), and they prey on the fact that these c...
Read more

Payday Lending and Predatory Lenders in Illinois

If you are in substantial debt in the Chicago area and are living in a paycheck-to-paycheck cycle, you may have taken out a payday loan to make ends meet. While payday lending is illegal in a number of states due to the predatory nature of these loans, it remains legal in Illinois. As a result, many debtors in the state have used payday lenders, and far too many of those borrowers cannot repay what they owe. According to a recent article from Progress Illinois , consumers have filed complaints about payday lenders in the state, illuminating a need for federal rules that address harmful lending practices . Predatory Payday Lenders and Protections for Consumers Due to the perceived predatory nature of payday loans, twelve states in the country have banned these lenders from operating completely, according to a fact sheet from loans.org . The states that currently have laws prohibiting payday lenders from operating include Arkansas, Arizona, Connecticut, Georgia, Mary...
Read more

New Information on Debts That Bankruptcy Cannot Discharge

If you are thinking about filing for bankruptcy in the Oak Park area, it is important to know that certain kinds of debts cannot be discharged in a bankruptcy case. Under U.S. bankruptcy law, these are known as non-dischargeable debts, or exceptions to discharge. There are certain types of debts that have long been identified clearly as non-dischargeable debts, while there are misconceptions about other types of debts that may or may not be dischargeable. As an article in CNBC discusses, the U.S. Supreme Court recently issued a ruling in the case of Bartenwerfer v. Buckley , which clarifies that debts incurred due to another party’s fraud cannot be discharged in an individual’s bankruptcy case. Our Oak Park bankruptcy attorneys can explain the Court’s recent ruling and provide you with additional information on dischargeable and non-dischargeable debts. Supreme Court Says Debt Incurred Due to Another’s Fraud is Non-Dischargeable The recent Bartenwerfer case involved a debtor attempti...
Read more