Bankruptcy can negatively impact every aspect of
your life, but it has a particularly sinking effect on your credit score. A
declaration of bankruptcy can lower your credit rating by as much as 220 points
for up to 10 years. However, with the help of experts like Chang and Carlin LLP’s Chicago Bankruptcy attorneys, you should be able to purchase a home
sooner than you envisioned.
While
a bankruptcy will appear on your credit report for up to 10 years—depending on
the type of bankruptcy you file, the good news is that most people seeking to
buy a home are eligible for a mortgage within two-years of filing bankruptcy.
Is
it possible to get mortgage financing before two years?
Yes.
You may be able to get a mortgage sooner, but the terms (i.e., interest rate,
etc.) won't be as attractive as it would be if you can wait the two years, and
you'll be paying a higher interest for up to 30 years.
How
to rebuild the credit score after bankruptcy?
This
can be done by two ways:
·
Obtaining an unsecured credit card
is nearly impossible after declaring bankruptcy, so your next best option is to
apply for a secured credit card. A secured credit
card gives you credit- limited to the amount you have to deposit with the
issuing bank.
·
Though obtaining
an instalment loan to rebuild your credit can be tricky because of your
bankruptcy past but another way to improve your credit.
Some other useful tips:
·
Obtain a co-signer. The potential co-signer
must be someone who has good credit and a healthy financial status. In addition
to improving your chances of loan approval, a co-signer may also be able to help
you get a lower interest rate on your mortgage.
·
Pay all your bills on time and work on
saving money.
·
Stay at the same job for a good length
of time.
When most people buy a new home, the last thing they ever expect to contend with is foreclosure. However, when you fall behind on your loan it may seem as if it's impossible to get caught up.
Expert foreclosure attorneys in Chicago can help you explore various legal options available.
Contact Chang and Carlin, LLP for a
Free Bankruptcy Consultation Today!
Chang and
Carlin L.L.P has established itself as a respected Bankruptcy and Real Estate
legal firm representing a diverse clientele in Chicago, Illinois and the surrounding
areas. Our Real Estate attorneys help you manage everyday real estate matters,
as well as more complex situations that require the experience of skilled
attorneys.
Chang
and Carlin, LLP, also offers expertise to clients who find themselves in
financial trouble and need guidance to regain financial stability. If you are
filing for Chapter 7 or Chapter 13 Bankruptcy in Illinois, get in touch with us
today for a Free Legal
Evaluation.
Disclaimer: The content provided by Chang and Carlin, LLP is
not legal advice and is purely for informational purposes. The information
contained herein is not a substitute for the advice of an attorney and does not
create an attorney-client relationship. If you are interested in obtaining
information about Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure
services, or Real Estate legal services, call our law firm at 1-866-790-8601
for a Free
Legal Evaluation. Chang and Carlin, LLP serves clients in Chicago, Schaumburg. Joliet,
and Warrenville.
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