Bankruptcy: When will things return to normal?



As you are going through the bankruptcy process, a good bankruptcy lawyer knows that you are likely wondering if you will be able to return things to normal once it is complete. You may have certain questions like: 


  • Can I rebuild my credit? 
  • Will I be able to keep my car?
  • Do I need to sell all of my assets? 
  • Will I be able to buy a house? 


This will answer the latter question and help you understand how bankruptcy can affect your ability to buy a house. This can be an incredibly difficult process to go through emotionally, and a good attorney will walk you through the bankruptcy process and try to alleviate any concerns you may have. 


Buying a Home After Bankruptcy

Many people who are filing for bankruptcy are worried this means they will never be able to afford a home or get a loan again, but this is absolutely possible. Bankruptcy can actually be incredibly helpful to the home buying process because it can help get you out of the debt you are in and get you on the path to rebuilding your credit. 


Once you have qualified for bankruptcy, you should not go out and try to sign a loan for another mortgage immediately. In fact, many loan agencies would not be willing to take on someone who has recently gone through bankruptcy. Take time to rebuild your credit first. 


Acquiring Certain Types of Loans

There are some organizations that will be willing to take you into consideration for a loan sooner rather than later. The Federal Housing Administration (FHA), for example, is typically more lenient than others and is known for giving good opportunities to buyers who have never purchased homes before and who do not have great credit scores. They may give you a loan for a mortgage 12 months after filing for Chapter 13 bankruptcy or two years after filing for Chapter 7 bankruptcy, depending on how good your credit history is in that time period. 


Do you want to speak with someone about how bankruptcy will affect buying a home? Contact a lawyer, like a Chapter 7 bankruptcy lawyer, for more information.