Buying a Home after Discharge

Is it possible to buy a home after declaring bankruptcy? Yes, it is, but you may have to wait for a period of time before doing so. Depending on your circumstance, you may be able to secure a home loan within 18-24 months.

At Ledford, Wu & Borges, LLC, our attorneys can help you through the bankruptcy process, and give you advice on how to position yourself for home ownership after bankruptcy. We have extensive experience handling Chapter 7 and Chapter 13 bankruptcy cases for clients throughout Chicago and the surrounding suburbs.

Home Loans and Mortgages After Bankruptcy

An important aspect of obtaining a home loan after bankruptcy is improving your credit. Before taking on a large home loan, it may be helpful to acquire smaller lines of credit, such as a secured credit card, and keep current on payments.

Of course, even if you can secure a home loan after bankruptcy, you will likely face prohibitive interest rates if you have not had time to improve your credit rating.

How can you lower the interest rate? Put equity into the project. Save up for a 10 to 20 percent down payment. As for the monthly payment: A good rule of thumb is that it does not exceed 25 percent of your monthly take home pay.

Buying a home after bankruptcy should be carefully considered and all of the legal angles should be explored. Our experienced bankruptcy lawyers will work with you personally to get a clear understanding of your situation. We will help you understand your rights as well as explore potential risk and liability.

Contact Us

Is filing bankruptcy right for you? Contact a bankruptcy lawyer by e-mail or call 312-574-3327 for a free consultation at any of our seven office locations. We are ready to help.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.