Purchasing a Home After Bankruptcy

Bankruptcy Attorneys Atlanta GAFiling for bankruptcy is no decision that should ever be taken lightly. The decision to file for Chapter 7 or Chapter 13 has consequences that can last for a few years; therefore, the decision to file for bankruptcy should be made with as much information regarding your future as possible.

Bankruptcy causes a drastic hit to a filer's credit score. It takes a relatively strong credit score to be able to make major loans towards large purchases. When a bank does a credit check on a person to see if he or she qualifies for a loan, banks will almost always avoid lending money to someone who has been through bankruptcy within the last four to seven years. While it is possible for some filers of a Chapter 13 bankruptcy to obtain a new conventional mortgage or a new FHA loan even during the repayment period, not everyone qualifies.

Many times credit companies and banks want to have proof that a former bankruptcy filer has been able to move past their previous debt and money issues. The four to seven year window where loans and allowances are not given can be a time of proving to creditors that you have earned the right into once again securing credit and being able to pay it off. While this may seem like a long period of time, there is a lot that you can prove during these years. You can successfully rent and make payments on an apartment or home and/or car, you can acquire more steady income, you could have gotten married or divorced and the status of your finances could drastically change. A lot can happen over the course of just a few years, and this time gives creditors a glimpse of who the "new you" really is that is requesting a loan.

Bankruptcy is not anything that you would wish to go through, and it is very important that before you make the decision to file that you are aware of the future consequences that will be presented. If bankruptcy is your only, or best, option, your future can look bright again. Yes, it will take some time, but take refuge in knowing that your life can make a drastic turn for the better.


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1718 Peachtree St NW, #385
Atlanta, GA 30309
(404) 685-8800