What Does Bankruptcy Mean for My Future?
Bankruptcy is a viable solution to overcome insurmountable debts that can help you and your loved ones move forward. It can, in certain situations, wipe the slate clean or give you a chance to catch up on your debts and provide the opportunity for a brighter future. Most people are unaware, however, that bankruptcy proceedings can partially inhibit your ability to utilize financial tools such as credit cards and certain lending options because of the impact to your credit score. Yet the biggest question people who are considering bankruptcy ask themselves is, “Will I still be able to purchase a home after bankruptcy?”
Can I Still Buy a Home After Bankruptcy?
The short answer to this question is yes, you do in fact have the opportunity to buy a home post-bankruptcy. Please understand that the process is not instantaneous, though, and will require some unquantifiable amount of work and patience to achieve. Firstly your bankruptcy will need to be discharged. Next, your will need to work to build up your credit score. Lastly, you will need to find a mortgage to purchase your home.
Discharging Your Bankruptcy
Finding a Chapter 7 bankruptcy lawyer can help you determine your best options and increase your success of discharging your bankruptcy. If you require the invaluable services of a bankruptcy attorney in South Bend, Indiana, consider the help of the Law Offices of Jason R. Moseley. We concentrate in bankruptcy law and have helped countless individuals in Indiana with their bankruptcy proceedings.
The next step towards a home purchase will be rebuilding your credit. A couple of options you have that effectively build your credit score include installment loans and secured credit cards. Though you may think that cutting up every last credit card and closing your credit accounts can help you avoid future debt, this can hurt you in the long run. A secured credit card is backed by money that you deposit at the bank beforehand, and can help you rebuild your credit. Also, beware of credit repair agencies. While they can be helpful, read the fine print to ensure you don’t get bombarded with expensive fees.
Finding a Mortgage
After two to five years of rebuilding your credit you may qualify for a mortgage again. Your lender will want see that you are financially capable of paying your current debts to see if you have the financial capacity to make mortgage payments. They will review your credit score and other financial assets such as retirement benefits or a 401(k). These will make you look more stable in the eyes of the lender.
If you feel that you need to proceed with liquidating your assets in exchange for freedom from insurmountable debts, find a local bankruptcy lawyer. The Law Offices of Jason R. Moseley concentrate in bankruptcy law and can guide you through the process to help you plan for your future. We have helped countless clients in Indiana wipe the slate clean to create the opportunity for a brighter future.
Call us at 574-707-8675 to reach our office in South Bend, Indiana or 219-472-8391 to reach our Merrillville, Indiana office.