Deciding to file bankruptcy can be an emotionally and financially difficult decision to make. Bankruptcy filers in Kentucky and other parts of the U.S. may be unsure of what long-term financial effects bankruptcy can have on their credit scores. After filing, individuals may be eager to return to their normal lives. While filing Chapter 7 bankruptcy can offer individuals a fresh start, some filers may be wondering how the situation could influence their ability to purchase a new home in the future.
Individuals who have filed Chapter 7 bankruptcy may be able to keep their homes. This will largely depend on whether a person can continue making mortgage payments and how much equity he or she has in the home. Individuals who have minimal or negative equity in their homes may be exempt from having to sell their properties to pay off debts.
Chapter 7 bankruptcy filers who are interested in purchasing new homes may have to wait some time. The filing process will most likely have to be completed before any large purchases can be made. It could take some time for each creditor to respond to a case, and rebuilding credit could also take several years. Fortunately, it’s not impossible for Chapter 7 bankruptcy filers to purchase new homes as long as they’re willing to dedicate their time to rebuilding their credit.
Purchasing a new home after filing for Chapter 7 bankruptcy could require jumping through a few financial and legal hoops. Individuals who have filed bankruptcy and are looking to move forward with their financial futures may consider consulting with an experienced bankruptcy and debt relief attorney. An attorney may be able to help an individual navigate his or her financial life after filing for bankruptcy.