How Soon Will My Credit Score Improve After Bankruptcy?
This ARTICLE On Rebuilding Credit After Bankruptcy To Qualify For A Mortgage
Homebuyers can qualify for a mortgage after bankruptcy. Bankruptcy is a great tool for consumers to get rid of unsecured debts and get a new fresh start in their financial life. There are many Americans who would benefit from filing bankruptcy. However, many people think bankruptcy is really bad and will ruin their life. Many consumers are under the impression that you will not be able to buy a house after bankruptcy. This is absolutely not the case. Bankruptcy is a federal law that enables consumers with substantial debts to get those debts discharged and start new life debt-free. There are two common types of consumer bankruptcy. Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are the two most popular types of consumer bankruptcies. Homebuyers can qualify for a mortgage after filing bankruptcy. Capital Lending Network, Inc. offers mortgages one day out of bankruptcy. Government and conventional loans require a minimum waiting period after bankruptcy to qualify for a mortgage.
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is more common and is often referred to as total liquidation bankruptcy:
- Chapter 7 Bankruptcy is recommended for consumers who have no job and/or a job that is not stable with little to no assets
- Petitioners for Chapter 7 Bankruptcy need to pass the Chapter 7 Bankruptcy Means Test and there is a maximum household income cap to qualify
- There are certain amount of allowable assets petitioners can keep for consumers who are filing Chapter 7 Bankruptcy
- Petitioners are allowed to reaffirm their home mortgage, cars, and other assets after bankruptcy
The second type of consumer bankruptcy is Chapter 13 Bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is the second type of consumer bankruptcy and you need to have a full time job to be eligible:
- Petitioners of Chapter 13 Bankruptcy need a full time job to qualify
- Chapter 13 Bankruptcy is normally filed by consumers with a full time job and/or regular income and those who have assets
- They file Chapter 13 Bankruptcy because they are overwhelmed in debt and need a repayment plan over a course of time
- Chapter 13 Bankruptcy is a court-ordered restructuring of the petitioner’s debts
- A trustee is assigned to the petitioner and allocates a percentage of their monthly wages to pay the list of creditors
The list of creditors will get a reduced amount of monthly payments for the term of the Chapter 13 Repayment plan. Most Chapter 13 Bankruptcy repayment plan is for 60 months.
What Does Chapter 13 Bankruptcy Discharge Mean?
After the petitioner finishes the repayment plan over 60 months, the trustee will recommend to the U.S. Bankruptcy Courts to discharge the remaining balance on all the debts still owed to creditors:
- Once the bankruptcy judge discharges the Chapter 13 Bankruptcy, the petitioner no longer owes any debt and can start a fresh financial start in life
- Most debts are dischargeable in bankruptcy
- Debts that cannot be discharged are federal debts such as student loans, fines owed to the federal government, and debts that were incurred due to fraud
- There is life after bankruptcy
- People can get credit scores to over 700 FICO in less than one year after bankruptcy discharged date
- The team at Capital Lending Network, Inc. can advise our viewers on how to rebuild and re-establish credit after bankruptcy and qualify for a mortgage
In this article, we will discuss and cover Rebuilding Credit After Bankruptcy To Qualify For A Mortgage.
When Should I Start Rebuilding Credit After Bankruptcy To Qualify For A Mortgage
We will cover on rebuilding credit after bankruptcy so you can start getting ready to qualify for a home mortgage.
- We will first discuss on rebuilding credit after bankruptcy discharged date on Chapter 7 Bankruptcy
- Once you file Chapter 7 Bankruptcy, it takes normally 90 days for the Chapter 7 bankruptcy to get discharged
- A discharge means all debts included in the bankruptcy petition have been discharged and the petitioner no longer owes
- This is a good day
- You should start rebuilding and reestablishing your credit as soon as you get your bankruptcy discharged
- How can you rebuild your credit if you just got a bankruptcy discharged?
- Who is going to give you credit so you can rebuild and reestablish your credit after bankruptcy
We will show you the steps in rebuilding and re-establishing your credit after the bankruptcy discharged date.
Fastest And Easiest Way Of Rebuilding Credit After Bankruptcy To Qualify For A Mortgage
Homebuyers can qualify for a mortgage after bankruptcy. Capital Lending Network, Inc. offers non-QM mortgages one day out of bankruptcy and foreclosure with no waiting period requirements. However, the down payment requirement on mortgages one day out of bankruptcy and foreclosure is a 30% down payment. If you want to qualify for a government and/or conventional loan with a 3% to 5% down payment or a VA and/or USDA loan with no down payment, you need to meet the waiting period requirements. The waiting period requirements are dependent on the particular mortgage program. Just meeting the waiting period requirement does not guarantee you mortgage approval. Lenders expect borrowers to have rebuilt and reestablished their credit after bankruptcy. No late payments after bankruptcy are normally allowed. Late payments after bankruptcy and/or foreclosure have been frowned upon by lenders. It is also difficult to get an approve/eligible per automated underwriting system with late payments after bankruptcy and/or a housing event. The key to reestablishing credit after bankruptcy is to make all of your payments timely. Getting new credit is key in rebuilding your credit after bankruptcy. How can you get new credit after bankruptcy?
In the next paragraph, we will show you how to rebuild and reestablish your credit after bankruptcy and get your credit scores to 700 FICO in less than one year after your bankruptcy discharge date.