Buying a House in Georgia After Filing for Bankruptcy
January 3, 2022
Filing for Bankruptcy, Purchasing a Home After Bankruptcy
Over the past few years, COVID-19 has disrupted many industries, sent the housing market soaring but maintained low borrowing rates for mortgage financing. Unfortunately, the limitations caused by the pandemic have been tough on American wallets. Increases in unemployment, medical bills and divorce created additional financial burdens, resulting in an uptick in bankruptcy filings.
It’s important to know you are not alone if you find yourself caught between financial difficulties and the desire to purchase a home at historically low interest rates. Despite past money concerns, buying a house in Georgia after filing for bankruptcy is possible.
How Soon Can I Buy?
The concern about continued price escalation can increase the drive to get into a home sooner rather than later. While you will most likely be able to own your own home, you will need to spend some time rebuilding your credit. Thankfully, following your bankruptcy filing, you will have fewer financial obligations and can work toward restoring creditworthiness. Remember that it is possible to have remaining debt after a bankruptcy, and your bankruptcy lawyer will help you determine what you will still pay after you file.
Rebuilding Your Credit After Filing for Bankruptcy
Lenders will usually want to see several years of stable employment income. The number of years will vary by occupation and lender, and they will also want to see a sizable down payment and a good credit score. Saving the down payment and improving your score are not insurmountable tasks, but it will take some slight changes on your part:
- Design a flexible budget that eliminates unnecessary spending and allows for small deviations.
- Pay yourself a set amount from each paycheck to save up for your purchase. Make the payment automatic, so you do not have to remember to transfer it.
- Use a credit card to pay recurring bills. Never put more on the card than you can pay back the next month and make sure you pay it on time.
George R. Belche can help you through your debt concerns and bankruptcy proceedings in Georgia. For a free consultation, contact the office today.
George R. Belche, Attorney at Law
189 West Pike Street, Suite 103
Lawrenceville, GA 30046