One of the most common reasons why people avoid the option of filing for bankruptcy is the way that it can affect their finances long after the bankruptcy process. When you are facing tough financial circumstances, you have to think of the future. Filing for bankruptcy could mean that you can face unfavorable interest rates shortly after filing for bankruptcy, but it does serve as a fresh start. Many people feel as though a bankruptcy will prevent them from accessing financial products for the full 10 years that it remains a credit report but this is a common myth.
There’s no hard rule that you won’t be able to qualify for a mortgage if you filed for bankruptcy. Chapter 7 bankruptcy will stay on your credit report for 10 years but a chapter 13 bankruptcy will age off your report in seven years. Qualifying for a mortgage comes down to your income, your credit history, and the monthly obligations that you face for debts. It’s possible that you could still qualify for a mortgage after 2.5 years of filing for your bankruptcy petition with an adjusted interest rate.
Although you may not qualify for the most favorable interest rate with your bankruptcy, you will be able to pave the way towards homeownership by re-establishing your credit and continuing to build up funds for the future. Ongoing simple steps like monitoring your credit card reports, re-establishing your credit, and working to build up your credit score after bankruptcy can be an excellent way that you can buy a house after filing for Los Angeles bankruptcy. Bankruptcy does not represent the end of your finances, instead it can stand as an excellent starting point for your future.
Contact us today if you are interested in filing for bankruptcy.
This article was written by Alla Tenina. Alla is one of the best Bankruptcy Attorney in Sherman Oaks, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.