Getting a Loan or Mortgage after Bankruptcy
It is a common misconception that once someone files for bankruptcy, he or she is ineligible for a loan or mortgage in the future. And, while it can be much harder to secure a loan following a bankruptcy filing because of the damage to one’s credit score, it is far from impossible. Although a bankruptcy filing stays on your credit score for 10 years, you can still qualify for a mortgage or loan by showing good credit history for two years following your bankruptcy filing. Under these circumstances though, your loan may also come with some restrictions, such as higher interest rates or paying more money upfront.
At the Russell Van Beustring P.C., our Houston bankruptcy lawyers are dedicated to helping people like you take legal action to get out of debt so you can move on with your life. If you or someone you know is facing financial difficulty and thinking about bankruptcy as an option, contact us today at 713-973-6650 and schedule a free consultation.
Improving Your Chances of Receiving a Loan
Whether you are applying for a mortgage or possibly an auto loan, a past bankruptcy filing can have a significant impact on you being approved. Fortunately, by showing good credit practices, you can start rebuilding your credit score, which could help you secure the loan or mortgage you want. You can improve your credit by getting a secured credit card to use for a small amount each month and paying that amount off. You should also focus on paying off all other loans.
When applying for a loan or mortgage, you should be aware that you may face a number of restrictions. This could include a higher interest rate, more money put down up front, and proof of financial stability. How a person is affected will vary from person to person, depending on their financial situation.
Let a Houston bankruptcy lawyer at the Russell Van Beustring P.C., help you every step of the way with your case so you can get out of debt and on with your life. For more information, contact us today at 713-973-6650.