If I file for bankruptcy will i be able to buy a home one day?
I am 24 years old and I am considering filing for bankruptcy. I know that there is a good chance I’ll be able to keep my car because I still owe money on it and I’ve been makinng those payments successfully, but I’m worried that filing will seriously effect my ability to one day become a home owner. Need guidance from someone experienced.
Posted August 13th, 2010 in Bankruptcy Q And A. Tagged: 24 years, filing for bankruptcy, good chance, guidance, money.
Hi. Bankruptcy is not the end of the world. Yes, you will be able to purchase a home after bankruptcy. Depending on if you are upside down on your vehicle ( owe more than what it is worth) you may want to surrender the car in the bankruptcy and purchase another vehicle. The main thing to remember if you are going to file bankruptcy is to review your credit report and make sure that every creditor listed in your bankruptcy indicates that the debt was discharged in bankruptcy. If not, those type of errors hurt more that the mere fact of the bankruptcy filing. Dispite what some of the reviews think, it takes about 2 years to rebuild your credit after bankruptcy. But, you can purchase a home after bankruptcy.
Just remember that you can recover and it is not the end of the world. Hope this helped
August 13th, 2010 at 5:08 pmyour credit will seriously be hurt, and you wont be able to get a legitamite mortgage with a good rate and terms for 10 years. Get a second job and stop spending money, and try to refinance everything, and sell your car.
August 13th, 2010 at 5:08 pmIt will hurt you in many ways. Your credity will be damaged for many years and it will definitely affect your ability to buy a house or get a loan. You should consult an accountant before filing for bankruptcy.
August 13th, 2010 at 5:08 pmAssuming you actually rebuild your credit, you’ll eventually be able to buy a home, but AT LEAST two years in the future. However, you will pay a higher interest rate and probably more fees.
Don’t do it if you don’t have to. It is not the easy way out and a terrible way to start your future. BTW, it doesn’t erase student loans.
August 13th, 2010 at 5:08 pmfiling bankruptcy is not always a good answer without professional advice. a respected accountant would be your best answer not a attorney. my advice is to avoid bankruptcy unless it is the most last resort. to recover from a bankruptcy is very very difficult to obtain credit for anything.
August 13th, 2010 at 5:08 pmUnder the new rules, the first step in figuring out whether you can file for Chapter 7 is to measure your "current monthly income" against the median income for a household of your size in your state. If your income is less than or equal to the median, you can file for Chapter 7. If it is more than the median, however, you must pass "the means test" — another requirement of the new law — in order to file for Chapter 7.
Under the old rules, most filers could choose the type of bankruptcy that seemed best for them — and most chose Chapter 7 (liquidation) over Chapter 13 (repayment). The new law will prohibit some filers with higher incomes from using Chapter 7.
You will still have to wait about 10 years to become a home owner. Do not file bankruptcy. Just sell what you have own at a lower price. Don’t burn your money. Take what you have and make a new start without the big red stamps.
"Settled for Less Money than Owed" looks a whole lot better than "BANKRUPT" or "FORECLOSED".
August 13th, 2010 at 5:08 pmBankruptcy will affect your credit for years afterward, this much is true. If I remember correctly, bankruptcy generally stays on your credit report for 7-10 years afterward. I know that the general rule of thumb is that you can’t file bankruptcy again for 7 years after filing. However, if you demonstrate a track record of financial responsibility for the first few years after filing bankruptcy, most creditors are willing to show some leniency. I’ve been reading up on credit and personal finance matters in order to get myself on track after struggling through college, but I’m certainly no expert.
August 13th, 2010 at 5:08 pmThe most appropriate site for your question –
http://www.usalegalcare.com/Bankruptcy.htm
Trust me its good
August 13th, 2010 at 5:08 pm