You can never own a home if you have filed for Bankruptcy.
False.
To the contrary, assuming that you otherwise qualify, (Have a down payment, closing costs, a job, etc.) it is likely that you would be able to purchase a house within one to two years of filing a bankruptcy.
There are two very practical reason why a creditor would lend to a person who has filed for bankruptcy:
- The borrower has gotten rid of all of his unsecured debt by filing bankruptcy. As a result, the borrower has a better ability to pay a mortgage; and,
- If the borrower can’t make the monthly payments on the house note, the borrower has limited options: The borrower can’t discharge the mortgage in a Chapter 7 bankruptcy for a period of 8 years. Instead, the best they could do is file a Chapter 13 bankruptcy to restructure the debt through a Chapter 13 Plan.
Don’t believe myths: Contact an experienced bankruptcy attorney to get the facts.
