Can You Buy a Home After Filing For Bankruptcy?
Many people have a dream of purchasing a home. A place they can relax in after a long day at work or a place their children can run around and grow up in. After filing for bankruptcy, this dream may seem like a longshot. It may even seem unachievable. This does not have to be the case, though. Filing for bankruptcy may feel like you have hit rock bottom. Bankruptcy, however, gives you the opportunity to start again. You can also still achieve your dream of owning your own home. It is important to know what your timeline may look like after you have filed for bankruptcy so that you know which steps to take before trying to buy a house.
Is there a right time to purchase a home after bankruptcy?
Absolutely. When a court accepts your motion to file bankruptcy, it is important to understand that this would not be the right time to try to buy a house. It is best to get your finances in order and wait for the court to discharge your bankruptcy debts. When you are hoping to move forward with the home buying process you will want to know more about:
- What kinds of debts you still have. Bankruptcy does not necessarily mean you are completely out of debt. You may still have things like student loans, alimony, or child support debt. These are things that won’t be taken care of with bankruptcy.
- Look at your credit score. Your credit score will be a very important number and it is what banks and car dealerships look at when they are considering giving you a loan. Poor credit will mean a lower likelihood of getting a loan for something like a home. Continually looking over your credit score can also help you notice any errors that may pop up.
- Develop a home-buying plan. Begin looking at what you will be able to afford monthly when it comes to your mortgage, your utilities, and any surprises that could come up (like plumbing work). If you work with a lawyer, like a bankruptcy lawyer from a law firm like Pioletti Pioletti & Nichols, you can talk with them about what you may need in your plan to prepare for purchasing a home after bankruptcy.
Speaking with professionals can help you determine when it is the right time to purchase a home after you have gone through the bankruptcy process. If you need help filing for bankruptcy or looking into purchasing a home after bankruptcy, reach out to a local attorney now.