January 16, 2021 By:
Contrary to popular perception, seeking bankruptcy protection doesn’t leave a permanent stain on your credit. You can expect your credit rating to show an immediate impact after a bankruptcy filing. However, if you put together a plan and stick to it, your credit score can rebound fairly quickly for a couple of reasons:
In addition, creditors often look at factors other than your credit score. Many consider a bankruptcy filing a positive step, a sign that you’re serious about getting your finances under control. In addition, many creditors give weight to what you’ve done lately. A consistent record of making payments on time may make you a better credit risk, even if your credit score is still a little low because of a bankruptcy filing.
For an FHA loan, you must wait at least two years after a Chapter 7 bankruptcy to qualify. If you file under Chapter 13, you may be eligible for a home loan after 12 months, provided you’ve (1) made all payments over that period in a timely manner; (2) the bankruptcy court approves the request; and (3) you can show that the reasons for the bankruptcy won’t happen again.
To qualify for a VA (Veteran’s Administration) loan, you typically must wait two years from the filing of a bankruptcy petition.
At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, and videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.