Getting a Mortgage After Bankruptcy How You Can Improve Your Credit Score Here ph
Declaring bankruptcy can often be the only option when you end up drowning in debt. Bankruptcy is supposed to help those who cannot find another way out. A Chapter 13 Bankruptcy allows you to use future disposable income so that you can pay back a specific percentage of your debts over a set period of time. A Chapter 7 Bankruptcy allows you to use current assets, if any, to repay a percentage of your debts immediately. After the bankruptcy is administered, you’re free from the obligation to repay most debts. Additionally, when you declare bankruptcy, you free yourself from creditor and collection agency phone calls and have the opportunity to start over again with a fresh slate. A typical concern asked by clients is “how long until I can get a mortgage?” When you declare bankruptcy, it will appear in your credit history that you filed for bankruptcy. A bankruptcy appearing on your credit report tells potential lenders that your prior lenders probably did not get back all the money which you borrowed. If future lenders see you have declared bankruptcy previously, you might be considered high-risk candidate, since you might not have changed, but not always. After receiving a Chapter 7 discharge, creditors know that you can not receive another discharge for a good length of time. This fact causes many companies to market to individuals who just received a Chapter 7 discharge as these companies feel that a recent Chapter 7 discharge makes individuals a safer credit risk. Obtaining a mortgage after bankruptcy is difficult, but there are ways to go about doing it. First, building up good credit takes time. Fortunately, a good percentage of people that file for bankruptcy actually notice a big increase in their credit score within 1 year of discharge. Contrary to widespread belief, your credit score will not start from scratch. You can explain to your lender about how you will change until you’re blue in your face, but a more effective way is to notify the lender that you can not discharge their debt in another bankruptcy for several years. The initial increase in credit score for many bankruptcy filers, along with building up good credit can make an individual who filed for bankruptcy a solid candidate for a mortgage in about two after receiving a discharge. You may be eligible for certain government programs to help you get a mortgage. Some will work with you to put less money down on your new home and to convince a lender that you ought to qualify, even when you have declared bankruptcy in your past. If you have a solid income now and are working to pay off debts, you may qualify for some of these programs. Filing for bankruptcy is a difficult decision that can have a significant impact on your financial future. It’s good to make absolutely sure it is the best option for you. Bankruptcy should be your last resort financially, as it will make it difficult to do things like obtain a mortgage in the future.
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The Law Offices of Michael A. Dye, P.A. is a Florida Bankruptcy law firm. The firm is a Federal Debt Relief Agency and assists consumers filing for protection under the United States Bankruptcy Code. For More information, please call (954)745-5848 or visit http://BrowardCountyBankruptcyAttorney.com Agree or disagree? Tell me and I'll send you a free gift.
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Do's and Dont's of the Credit Card Game Here pf Futhermore: Getting a Mortgage After Bankruptcy
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