It is a well known fact that filing for bankruptcy—while alleviating the month-to-month burden of incoming bills and debts—can have an impact on a filer’s credit score and ability to get loans in the future. However, there is a common misconception out there that once people file for bankruptcy they are never going to get a loan again.
In a recent article by the New York Times, the paper discusses how recent bankruptcy filers may actually be eligible to obtain a home mortgage sooner than most people think. Bankruptcy filings peaked in 2010, at the end of the recession. At their apex, there were approximately 1.5 million filings in 2010. However, after that the numbers began to taper off.
Many of those who filed around the end of the recession are now getting back on their financial feet and are prepared to buy a home again. The question is, how long must someone wait to obtain a mortgage after bankruptcy and, secondarily, how long should someone wait to obtain a mortgage?
According to the Fannie Mae loan guidelines, there is a two-year waiting period after someone files for bankruptcy before he or she is eligible for a home mortgage. Under the Federal Housing Administration’s program, the wait time is two years for a Chapter 7 bankruptcy and one year for a Chapter 13 bankruptcy.
However, regardless of whether a borrower is able to take out a mortgage, the question still remains whether it is a good financial decision. This is a more complex question that depends heavily on each individual’s set of circumstances. However, suffice it to say that there is not a blanket answer that fits all filers.
Filing Bankruptcy in Kentucky and Indiana
Filing for bankruptcy does not need to destroy the future of your credit for the rest of your life. In fact, it doesn’t. In many cases, the government has programs set up to help recent filers get back on their feet and on their way to a more sound financial future. The first step is to speak to an experienced bankruptcy law attorney and to discuss if bankruptcy may be a good option for you. Remember, bankruptcy doesn’t need to define who you are.
Are You Considering Filing for Bankruptcy in Indiana or Kentucky?
If you are currently suffering from crippling financial debt that keeps you from living the life that you want to live, it may be time to consider filing for bankruptcy protection. Each year, hundreds of thousands of people file for bankruptcy and get on their way to a more sound financial future. To learn more about the bankruptcy laws in Kentucky and Indiana, and to speak to a dedicated and experienced attorney about your specific situation, call the Schwartz Bankruptcy Law Center at 866-366-3328 to set up a free initial consultation. The Schwartz Bankruptcy Law Center has experience helping hundreds of people benefit from the protections of bankruptcy.
More Blog Posts:
Bankruptcy Judge Allows Debtor To Recover Attorney’s Fees After Creditor Violated Automatic Stay, Kentucky Bankruptcy Lawyers Blog, published October 6, 2014.
Bankruptcy Court Allows Malpractice Plaintiff to Sue Surgeon in Bankruptcy, Kentucky Bankruptcy Lawyers Blog, published November 2, 2014.