People avoid filing bankruptcy because of the potential financial consequences that could follow. If you’re facing difficult financial circumstances, it is important to consider the future. Although you may face negative interest rates soon after filing bankruptcy, it can also provide a fresh start. A lot of people believe that bankruptcy will stop them from being able to access financial products for the 10 years it remains on their credit report. However, this is a common misconception.
If you file for bankruptcy, there is no rule saying you will not be eligible for a mortgage. Chapter 7 bankruptcy will remain on your credit report for ten years, while a chapter 13 bankruptcy will be removed from your credit report within seven years. Your income, credit history, and monthly debts will determine your eligibility for a mortgage. You may still be eligible for a mortgage even after filing your bankruptcy petition within 2.5 years.
Even though you might not be eligible for the best interest rate due to bankruptcy, you can still make the transition to homeownership by improving your credit score and building up funds for the future. After filing for bankruptcy in Los Angeles, you can still buy a house by taking simple steps such as monitoring your credit reports and repairing your credit. Bankruptcy is not the end of your finances. It can be a great starting point for your future.
If you are interested in bankruptcy filings, please contact us immediately.
This article was written by Alla Tenina. Alla is one of the best tax attorneys in Los Angeles California, and the founder of Tenina law. She has experience in bankruptcies, real estate planning, and complex tax matters. Click Here for more information. 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.