Ever been through a big fight and the end of it kind of left you feeling down? You can, of course, think of that beyond bankruptcy, but as in most things, common sense plays its hand. So what is common sense? If everyone who filed for personal bankruptcy was unable to ever buy a home or car again, there sure would be a lot of apartment renters and bikers. Just in 2009 1.1 million people filed for bankruptcy. So what did these people do? They went out and got loans after bankruptcy. You can too. This guide shows you how.
You Can Buy Again
You will be able to buy again, but likely not immediately. Bankruptcy stays on your record for 10 years, no matter whether it’s Chapter 7 or Chapter 13. You can still buy, in some cases even buy a home, but you’ll need to work with bad credit, find a good lender, and prove you can pay your bills.
Bad Credit Loans
Many banks and even car dealerships offer bad credit loans. Be careful with these, as interest rates can rob you. However, many lenders are more than willing to work with you after a certain period, can offer you a reasonable rate based on your credit, and if you can prove to them you are currently paying all bills, they may even swing you a good deal.
Time to Wait
You do have to wait some time. Some experts highlight how you might want to wait 1-2 years before buying a home. It’s sometimes problematic to buy a car too, but that purchase is typically smaller and sellers can work with you.
Why wait several years? It allows you to rebuild your credit by paying on credit cards on time, paying off other bills, and proves you can handle a new loan.
Proof of Bills and Income
To get a mortgage loan after bankruptcy, yes you should wait 1-2 years, but once you’ve established new credit, remember your bankruptcy is still on file. You can still get a mortgage by both showing verifiable income rates, such as your pay stubs, and by putting a down payment on the home. If you can do both, most lenders will be open to working with you.
Choosing Lenders
But how do you get a good lender? The trick is to use common sense once again, to not put all your eggs in one basket. In other words, try more than one lender. Query several lenders and compare offers. This is where you need to be very careful, as some might try to take advantage of you. That’s where querying several can work out.
Bankruptcy is not the end of the world. It’s a new day for you financially. In some cases, you simply won’t be able to buy a home right after bankruptcy. However, if you put some time into the process, if you rebuild your credit, and if you query more than one lender, you often can get a loan.
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This article was written by Jacob Malewitz. Jacob Malewitz is a professional writer specializing in informing readers on law topics for many top sites and blogs. For Chapter 7 and 13 bankruptcy help in New York, Nevada, and California, he recommends http://www.PriceLawGroup.com.
South Carolina residents interested in bankruptcy information should contact Drose Law Firm.
