Yes! Absolutely yes!
When buying a home and trying to get approved for a mortgage, lenders look at your income, credit score, debt-to-income ratio and other things.
What many people do not realize is that filing for bankruptcy is usually the fastest way to improve your credit score. Most people are able to have their credit scores in the 700's within a year or two after filing for bankruptcy, as long as they are financially responsible and do the things to build their credit such as getting a secured credit card and paying their bills on time.
Bankruptcy will also greatly improve your debt-to-income ratio, as you will most likely eliminate a large amount of unsecured debt with your bankruptcy filing.
If you are trying to get approved for a mortgage immediately after bankruptcy, you may not receive the best interest rates, as you need some time to allow your credit score to improve. Mortgage lenders usually like to wait 2 years after bankruptcy before financing someone.
Most importantly, when buying a home after bankruptcy, you should only get a house that you can truly afford. Many people go into debt because they simply have a house they cannot afford. Working with a good realtor and loan broker can help assure that you get home that meets your needs and that you can afford.
If you have any questions about bankruptcy please contact an Orange County Bankruptcy Attorney at
1st California Law.