Buying a House After Bankruptcy
Filing for bankruptcy gets you in a home faster than forclosure.
Schedule a ConsultationBuying a house after bankuprtcy is not an impossible dream. In fact, if you experienced a foreclosure, a bankruptcy may make you elibible to purcahse a house within 2-4 years after completion of the re-payment program. Without bankruptcy to cancel debt, it could take 6-7 years after a foreclosure.
Below we provide a timeline and the factors that affect your credit and ability to make future purchases, such as a new home. We also offer free consultations to discuss your unique circumstances and questions. Call us today at 866-261-8282 to speak with a licensed attorney.
Buying a House After Bankruptcy
If you file a Chapter 13 bankruptcy, you will typically be eligible to purchase a home within 2 – 4 years after completion of the re-payment program, depending on each bank's lending standards.
A common misperception is that filing a bankruptcy will destroy your credit. In reality, filing a Chapter 13 bankruptcy actually helps improve credit over the course of the program and will therefore position you to successfully purchase a new home. A bankruptcy will assist you by:
- Reducing and potentially eliminating debt that could affect your mortgage underwriting qualifying ratios.
- Providing your potential lender with a proven payment track record through the Chapter 13 plan.
- Ensuring that you are free of all unsecured debts at the completion of the program. Your new lender doesn’t have to worry about old debt popping up or a wage garnishment taking funds that render you unable to pay your new mortgage…neither do you.
How Long After a Chapter 7 Bankruptcy Can I Buy A House?
A Chapter 7 bankruptcy is a debt elimination program designed to help eliminate unsecured debts that you can no longer afford to pay. Rebuilding your credit after a Chapter 7 discharge requires managing credit wisely and establishing a positive payment history for all of your bills.
Typically, you will qualify for a new home purchase within 2 years of a Chapter 7 court discharge, depending on each bank's lending standards. Other factors include how you have managed your credit since the discharge and your income at the time of the loan application.
Discuss Your Options with a Detroit Bankruptcy Attorney
We offer free consultations for people to explore their debt resolution options and ensure that they will be able to reach their long-term goals, such as home ownership. We will carefully review your current circumstances and consider your future financial goals before making an informed recommendation.
Call us today at 866-261-8282 to speak to an attorney over the phone or set up an in-office appointment at any of our six Michigan law offices in: Detroit, Ann Arbor, Warren, Southfield, Dearborn and Flint.
Just wanted to thank you for all your help settling our deficiency with the bank.
After finding out the bank wanted us to pay the difference between what we owed them on the house and what they sold it for, I didn’t know which way to turn…the thought of possibly loosing our building kept…
My experience with the Chapter 13 process from beginning to end was challenging at times. Throughout the almost six years working with Acclaim Legal Services, I must say that from the very first day when my wife and I met with William Johnson to the final days working with Attorney Chris Jones and…
Cindy from your office gave me your information for feedback about our case.
Today she sent us a copy of the courts discharge, so our immediate feeling is over joyed to be done with the process. At the beginning we had no idea what to expect, but everyone in your office took their time to…
From one very satisfied customer!
It has been very pleasant to have Chris Jones helping with the bankruptcy process. At first you think you know everything by reading few things here and there from various web sites. Then when you meet Chris in the first 30 minutes you realize that you really…