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Buying a House After Bankruptcy

Buying a House After Bankruptcy

Bankruptcy Attorney in Kansas City, MO

If you are unable to pay your debts, you may be declared insolvent. To be declared bankrupt, a court must issue an order against you; this can be done at your request, at the request of your creditors, or at the request of an insolvency practitioner. Once bankruptcy has been settled, you may feel to start anew. With this, dreaming of buying a house after bankruptcy, would it still be possible?

At this moment, hiring a Kansas City bankruptcy lawyer would be of immense help. The lawyers at Jeppson Law in Kansas City, Missouri, assist clients in overcoming difficult financial burdens by filing for bankruptcy on their behalf. We have many years of experience helping people who find themselves in challenging financial circumstances, and we will be able to do the same for you. 

For further information, please get in touch with one of our bankruptcy attorneys as soon as possible. 

Why do I need a Bankruptcy Attorney in Kansas City, MO?

A bankruptcy attorney is an attorney who specializes in representing clients in court, drafting legal documents for clients, and providing advice to clients regarding bankruptcy. A law degree and a license to practice law in the state in which the attorney intends to work are prerequisites for becoming a lawyer.

A bankruptcy attorney can serve as your guide through the process of filing for bankruptcy and offer advice on the following topics:

  • The question of whether or not to file for bankruptcy
  • In what kind of bankruptcy should the petition be filed?
  • How does the process of filing for bankruptcy works
  • Which forms that were issued by the court need to be filled out?
  • Which financial obligations are qualified for consolidation, reduction, or cancellation?
  • The outcome of the bankruptcy case will determine whether or not you will be able to keep your home, vehicle, condo, and any other property you currently own.

In general, a Missouri bankruptcy attorney can direct you toward the appropriate legal course of action. If you handle your bankruptcy case without the assistance of an attorney, you run the risk of making legal mistakes that could have far-reaching repercussions for your finances.

If you decide to retain legal representation for your bankruptcy case, you should be prepared for the following:

  • An agreement or a contract that is legally binding and is made between you and the attorney. It is highly likely that a synopsis of the attorney’s services will be included in the agreement.
  • A description of payment arrangements. For instance, will the attorney charge a flat rate or one based on the number of hours worked? How much will it cost in total?
  • Conversations that are still going on. You are going to talk about the attorney’s strategy for handling your case.
  • An agreement. You are the one who will decide how and the frequency with which the attorney will provide you with case updates.
  • A listing of all the documents. The attorney representing you in the bankruptcy case ought to supply you with an exhaustive list of the necessary documents for the case.

How long will you have to wait before buying a home after bankruptcy?

Buying a House After Bankruptcy One to two years after declaring bankruptcy, you can purchase a home if you rebuild your credit and avoid incurring new debt.

A Chapter 7 or Chapter 13 bankruptcy will appear on your credit report and lower your credit score, but this does not preclude you from purchasing a home while you work to improve your credit history. Numerous individuals are unable to wait seven to ten years for the bankruptcy to be removed from their records.

In certain circumstances, declaring bankruptcy can be the first step toward purchasing a home. If you choose to work with a bankruptcy attorney, he or she will likely know real estate agents and mortgage lenders who have previously worked with individuals with a bankruptcy on their credit reports.

When to purchase a home after declaring bankruptcy?

Before you begin your house-hunting, you must consider the following:

  • You filed Chapter 7 bankruptcy, correct? Your debt will be discharged, but you may be subject to higher interest rates and have trouble obtaining a mortgage loan if you have poor credit.
  • You filed Chapter 13 bankruptcy, correct? You will have a repayment schedule that must be adhered to. Can a down payment be saved while making monthly payments?
  • Did you keep your vehicle during your Chapter 7 bankruptcy? Do you still owe money on your car?
  • After declaring bankruptcy, did your credit card debt for medical expenses increase?
  • What requirements does the mortgage lender have for home loans, interest rates, down payments, and credit scores?
  • Have you prepared a down payment? (In Chapter 13 bankruptcy, extra funds are typically used to repay some debt.)
  • Which of the types of loans are you seeking?

Are FHA loans appropriate for you?

The only loan approved by the government is a Federal Housing Administration (FHA) loan. If you are unable to make your mortgage payments, an FHA loan can be risky because you will lose your home through foreclosure.

In the event that you cannot make your mortgage payments, the government guarantees to pay your mortgage lender. It will not increase your debt, but it will appear on your credit report in addition to the bankruptcy filing.

Are conventional loans appropriate for you?

A conventional loan can be obtained from the following three institutions:

  • Government-owned loans such as FHA loans, VA loans, and USDA loans are guaranteed by Ginnie Mae.
  • Fannie Mae or Freddie Mac: Private loans or loans insured by the government (often require mortgage insurance)

Call our Bankruptcy Lawyers in Kansas, Missouri!

Dreaming of buying a house after bankruptcy or financial trouble? With Jeppson Law, our philosophy is that everyone deserves a second chance and a fresh start in life. We are here to help, not impose a heavier burden on you.

Break free from the debt spiral! Get a no-obligation consultation from experienced bankruptcy attorneys in Kansas City, Missouri today.

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Facing financial trouble?

Our philosophy is that everyone deserves a second chance and a fresh start in life. Contact our attorneys today if you’re ready to let go of your debt!
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