Bankruptcy and Credit Scores
Bankruptcy stays on your credit report for a period, but it doesn’t mean the end of your financial health. With careful planning and responsible financial behavior, you can rebuild your credit over time.
Will Bankruptcy Hurt My Credit and Prevent Me From Buying Another House?
There is this myth that if you file for bankruptcy, you won’t qualify for a home loan in the near future. As an Arizona bankruptcy lawyer and Arizona real estate lawyer, I always advise clients that they will be able to qualify for financing so long as they save money for a downpayment and continue to improve their credit.
How Long Does Bankruptcy Show Up On My Credit Report?
An Arizona bankruptcy lawyer must remind clients that although bankruptcy may adversely impact a person’s credit immediately after filing, credit will start rebuilding shortly thereafter. The bankruptcy filing doesn’t stay on a person’s credit report for as long as most people think.
When Can I Get Another Home Loan?
A common question I get is how long must a person wait after a foreclosure, short sale or bankruptcy before that person will qualify for another home loan. Although an Arizona real estate lawyer or Arizona bankruptcy lawyer is not a “credit expert”, Fannie Mae has established a number of different waiting periods for so called “derogatory credit events”.
Tidbits about credit scores and credit reports
A person facing foreclosure or bankruptcy is understandably concerned about how such decisions impact a person’s credit. The reality is that no one knows for sure how these credit scores are computed. An Arizona bankruptcy lawyer or foreclosure lawyer may be able to provide some tips and tricks that a person can use to minimize credit damage.