Myth No. 8: You Can Never Own A Home If You Have Filed For Bankruptcy

You can never own a home if you have filed for Bankruptcy.

False.

To the  contrary, assuming that you otherwise qualify, (Have a down payment, closing costs, a job, etc.) it is likely that you would be able to purchase a house within one to two years of filing a bankruptcy.

There are two very practical reason why a creditor would lend to a person who has filed for bankruptcy:

  1. The borrower has gotten rid of all of his unsecured debt by filing bankruptcy.  As a result, the borrower has a better ability to pay a mortgage; and,
  2. If the borrower can’t make the monthly payments on the house note, the borrower has limited options:  The borrower can’t discharge the mortgage in a Chapter 7 bankruptcy for a period of 8 years.  Instead, the best they could do is file a Chapter 13 bankruptcy to restructure the debt through a Chapter 13 Plan.

Don’t believe myths:  Contact an experienced bankruptcy attorney to get the facts.

About Kevin Gipson, Attorney at Law

I am an attorney licensed in all State and Federal Courts in Louisiana. I practice in the Greater New Orleans Area and work with Consumers to help them with their debt problems. My primary areas of practice are Chapter 7 and Chapter 13 bankruptcy and Student Loan Law.
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