Many Florida residents and others around the country have experienced financial hardships during the recent economic climate. Some consumers have elected to file for Chapter 13 bankruptcy in efforts to get their finances back under control. Many assume that someone filing for bankruptcy under Chapter 13 cannot buy a home. However, this assumption is being proved wrong more often today.
While some may have to wait a while after filing for Chapter 13 bankruptcy, it is possible to obtain a mortgage during the process. In fact, having the fresh start with finances is a positive move for many. Statistics show that those in financial stress who do not file for bankruptcy have credit scores that are lower than those who have filed.
Chapter 13 bankruptcy is one option for consumers. In this scenario, a plan is established to repay debts over a specified time frame. Another choice is to file for Chapter 7 bankruptcy, where all qualified debts are discharged immediately. While both options are viable for consumers, reports show that those filing for Chapter 13 bankruptcy may have more success in obtaining a mortgage loan more quickly. This is likely because the repayment plan process shows that someone is actively paying back a portion of the debt.
Financial hardships can create a significant strain on Florida families. However, there are several options for relief. A knowledgeable attorney can help determine if filing for Chapter 13 bankruptcy is the best option or if another plan is more appropriate for the situation. An experienced lawyer will work with clients to help get their finances back on track.
Source: themortgagereports.com, “Mortgage with a Chapter 13 bankruptcy“, Gina Pogol, Accessed on Dec. 19, 2017