Could bankruptcy help you buy a house?

On Behalf of | Jul 7, 2022 | Consumer Bankruptcy |

Living in Northeast Ohio, you know that it can be hard to find work. There are times when costs exceed what you can earn, and it can be very difficult to make ends meet.

While there are opportunities for growth, you can find yourself in a difficult situation if you lose your job or have to take off time from work because you were hit on the highway driving in. In those kinds of cases, you might feel overwhelmed with debt, but bankruptcy could offer you a solution.

Many people put off bankruptcy because they think it will limit their opportunity to purchase a home. However, you should remember that bankruptcy could actually free up more of your money and make it easier to get together your down payment and buy a home, especially if your credit is currently poor and you’re having a hard time making ends meet.

How can bankruptcy help you prepare to buy a home?

Think about your financial situation right now. Are you having a hard time paying your bills? Has your credit score taken a dive because you haven’t been able to make payments?

A bankruptcy can help you resolve some of those issues. Depending on the kind you choose, you may be able to eliminate some of, or all of, your debts, so you can focus on putting aside a savings and starting to work towards your goals of buying a property.

If you have a longer-term outlook, even a bankruptcy like a Chapter 13 bankruptcy could be beneficial for you. With that kind, you repay your debt over time, but you may not pay as much as you do now. In the end, any qualified debts can be discharged after you make payments on time for the length determined by the court.

A bankruptcy could improve your credit score quickly if it has already bottomed out, since you’ll be able to start repaying debts on time in the future. This, along with continuing to pay future debts on time, will help you get into a better position to buy a property in the future.