Can I Buy a House after Filing for Bankruptcy?

Yes, you can get a house after bankruptcy. That's what you wanted to hear, right? The better question would be, how long do you have to wait until you are approved for a mortgage after filing for bankruptcy? Well, first know this. There is no rule or law that says you can't buy a house (or a car, or a side of roast beef) after filing for bankruptcy. This is America where opportunities abound. Yes, you say, but "they" will see a bankruptcy on my credit report! So? Okay, yes- there is an issue with the bankruptcy that is giong to show up on your credit report. In most cases, it will not in and of itself prevent you from getting a mortgage. The bigger question is about time and how soon you can qualify. The bankruptcy needs to be "watered down" by other positive things on your credit report and this can take time. How long depends on the creditor (the bank or institution giving you the loan) as well as the other items on your credit report. Quite frankly, most people don't have the cash immediately after a bankruptcy with which to be buying a new home, so while you are saving up for a downpayment, you should be doing things that will positively impact your credit like getting a credit card that you pay off in full every month. Don't be late on existing bills. Positive little actions will build up over time (and if you don't believe me, read Jeff Olson's book "The Slight Edge", a must read for everyone with a goal). Your credit will gradually improve and home ownership can be yours. 

Ready to take the first step and get a bankruptcy started? O'Connor Cadiz Law can help. We file bankruptcies in Chicago and throughout the counties of DuPage, Cook and Kane. I look forward to sitting down with you soon! 


Carol O'Connor Cadiz
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Attorney & Owner at O'Connor Cadiz Law: Injury & Accidents, Disability Insurance.