Bankruptcy is a legal process designed to give financially struggling individuals the chance at a fresh start. A bankruptcy will wipe clean most debts, including credit card debt, installment loan debt and medical bills. Consulting with a bankruptcy lawyer in Carbondale Il is a good first step in deciding if filing for bankruptcy protection is right for you. One of the biggest concerns regarding a bankruptcy is how soon can a person buy a home again. If you do not keep your existing home after the bankruptcy has been discharged and closed, you obviously need a place to live. You could move in with family or rent an apartment or a home. Discuss your living arrangement with your bankruptcy lawyer in Carbondale Il before you fully commit to the bankruptcy as many landlord and property owners may require a tenant who has filed for bankruptcy to wait a year before they can lease from them. Being proactive having suitable housing will greatly reduce the stress of your situation. Before you can buy another home, you must also wait a period of time after your bankruptcy has been completed. Depending on the type of home loan will dictate how long you must wait. The various types of loans include FHA, VA, USDA and Conventional financing, and all have their own qualifying guideline requirements. FHA loans and VA loans require a 3 year waiting period from the date of a Chapter 7 bankruptcy discharge with all existing credit showing ‘paid as agreed.’ You may be able to get financing in less than 2 years from the date of discharge if you can demonstrate extenuating circumstances that caused you to file for bankruptcy. A USDA home loan requires a 3 year waiting period from the Chapter 7 bankruptcy discharge date. The waiting period may be less with acceptable extenuating circumstances. Conventional loans — those loans owned or guaranteed by Fannie Mae or Freddie Mac — require a 7 year waiting period for Chapter 7 bankruptcies or 3 years if you can put a 10% down payment and show 2 extenuating circumstances are accepted. As you can see, the consequences of filing for bankruptcy protection can be far reaching if you do not have a smart strategy before going into the process. However, if you are no longer able to manage your current financial situation, a bankruptcy may be your only real viable solution. Bankruptcy lawyer Carbondale IL – Hire a trusted bankruptcy lawyer in Carbondale, IL with The Law Office of Bradley P. Olson. They will assist you with all types of bankruptcy.
