There are thousands of people each month in Georgia filing for bankruptcy. This type of bankruptcy helps people that are in detrimental financial situations to wipe out their debts and start again. Many residents seem to think that once they have filed for bankruptcy, they won’t have good enough credit to obtain a mortgage and start their new life again.
Can I get a mortgage after bankruptcy?
You are permitted to obtain a mortgage in one year after exiting a chapter 13 bankruptcy and two years after a chapter 7 discharges when the mortgages are guaranteed by the Federal Housing Administration.
You are permitted to obtain a Freddie Mac or Fannie Mae approved mortgage in approximately two-four years after a bankruptcy discharge.
One of the most important things to remember after you have filed for bankruptcy is that you need to begin rebuilding your credit right away. Most people tend to think that there is no way to do this, so they don’t realize what they are missing out on.
How can I rebuild my credit after bankruptcy?
- Pay your rent and utility bills on time!
- Establish good habits with secured credit cards, never spend more than 30% of your limit, and pay it off each month.
- Rebuilding your credit after bankruptcy will take some work, but it is a totally obtainable goal. The common misconception is that when you file for bankruptcy your financial life comes to a screeching halt for the 7-10 years that a bankruptcy will show on your credit. It’s just not the case. Lender’s want to see that you are trying your best to rectify your bad financial situation, and bankruptcy was your option.
Don’t let this misconception stop you from getting help. Filing for chapter 7 or chapter 13 bankruptcy may be a good choice for you. At C. Golden & Associates we can help you get your life back. Call us and schedule a free consultation at one of our two convenient locations in Fayetteville, GA or Lithonia, GA.