Many people are hesitant to file for bankruptcy because they know that it will impact their credit score. What they believe is that they’re going to be ineligible for loans in the future.
This is concerning because they may have just been renting and hoping to buy a house later. They know they’re going to need a mortgage loan. If you declare bankruptcy, even if it helps you in the short term, are you sinking your chances of ever buying a home in the future?
You can still buy a home
There is good news; it is certainly possible for you to buy a home even after declaring bankruptcy. This does not prevent it, and you shouldn’t be overly worried about it.
The first thing to remember is that you can rebuild your credit. There are ways to use secured credit cards to increase your credit score, for instance, and staying out of significant debt in the future will also bump your score up. You can eventually build it back to the point where you’d qualify for a mortgage.
The second thing to remember is that not declaring bankruptcy could do more damage to your credit score than declaring it. If you spend the next five years struggling with debt that you can never pay off, missing payments and things of this nature, you’re just harming your future chances to get a mortgage. In that sense, it may be best to declare bankruptcy and then work on building your credit back up.
How do you get started?
If you believe the bankruptcy would be beneficial for you, take the time to look into the steps you’ll need to take to get the process underway.