As a practicing Lindenhurst bankruptcy lawyer, I know that there is an opportunity for credit after filing a bankruptcy case. In terms of mortgages, you will be able to get a mortgage after a Chapter 7 bankruptcy case or after a Chapter 13 bankruptcy case. I advise my clients that they should wait approximately 2 years after the filing of a Chapter 7 bankruptcy case to then apply for a mortgage. Most lenders are going to require that the debtor passed the two-year mark after filing before they will offer any kind of mortgage.
Secondly, you want to make sure that the debtor has taken those two years and made corrective actions in their finances. In other words, if they were upside down on their budget, hopefully during that two-year period after filing Chapter 7 bankruptcy, they have corrected some of the problems that caused them to fall behind. Maybe their income has gone up; maybe their expenses have gone down.
In any event, after that two-year period, the debtor should have saved up some money for a down payment on whatever piece of property he is trying to buy. If the debtor has put down 20%, he could eliminate the PMI which is additional insurance on the mortgage. PM I applies when people do not have at least 20% down to put towards the property. If you can save up money after filing, you are going to get a better interest rate and if you could put 20% down, you are going to avoid the cost of PMI.
So there is life after a bankruptcy claim. There is credit after bankruptcy. You just have to be smart with the offers that you take after a bankruptcy case is filed. Many of my former clients are very smart in that they will call me and ask me is this a good deal? Should I go for this type of credit? Most of the time the longer time between the bankruptcy filing and the time they’re going for credit, the better the deal is going to be. What I mean is the quicker deals are usually the worst deals. If the debtor can wait, the longer the debtor can wait, the better the deals are going to be. The debtor’s credit will improve after bankruptcy so the better credit officers will, once the credit improves.
For additional information about life after bankruptcy, contact a bankruptcy lawyer in your area. You will learn that there are many credit opportunities to be had after filing for relief under the U.S. Bankruptcy Code.