This question is often asked and really is hard to determine, as it really depends on which mortgage company you are dealing with and how they look at your bankruptcy, whether it be a Chapter 7 or Chapter 13.
In an article published by HSH.com , Julie Flatland, vice president of credit in the mortgage lending division of Carrington Mortgage Services in Santa Ana, California, is interviewed and provides some insight into this question that is often asked of bankruptcy attorneys by their clients, but never really answered.
Ms. Flatland provides some distinctions between Chapter 7 and Chapter 13 and how they can have different effects on the ability to be eligible for a mortgage after bankruptcy. She also provides four guidelines, or steps, to follow to improve your chances for qualifying for a mortgage.
All in all, her article confirms what I have generally always told my clients, and that is that obtaining mortgages and other debt after bankruptcy is usually possible, but is always dependent on your financial activities after bankruptcy and also which creditor is considering you for credit. As a general rule, our experience has been that bankruptcy does not totally destroy your ability to get credit in the future.
Click here to read the full article by hsh.com
If you have questions about bankruptcy, give us a call. The first appointment with us is free and there is no obligation. We might be able to help.