You can set your mind at ease, because the short answer to this question is yes: it is entirely possible to purchase a home after filing for Chapter 13 or Chapter 7 bankruptcy. Having a bankruptcy in your past is not an insurmountable barrier to home-ownership, nor does a former bankruptcy preclude the possibility of renting an apartment. Countless people have gone on to successfully buy homes after receiving a discharge. That being said, there are some considerations which debtors should be mindful of. In this article, our bankruptcy lawyers
will explain some of the factors you should think about if you’re planning on filing for bankruptcy and want to buy a house.
Focus on Rebuilding Good Credit
The entire purpose of bankruptcy is to give the debtor a clean financial slate by eliminating most if not all of the petitioner’s debts. This includes debt related to medical bills, credit card bills, personal loans, business debts, social security
over-payments, past due rent, civil court judgments (excluding fraud), collection agency accounts, and many other types of debt. Bankruptcy is meant to unburden debtors, not act as a permanent financial punishment, and it is absolutely possible for most debtors to rebuild good, healthy credit after getting a discharge.