The word Bankruptcy is not just the matter of eliminating your debts; in fact, it comes with a lot of damage to your credit report as well as credit scores. Beside all the proceedings, the challenges and hurdles will remain if you are planning to get a car loan, credit cards or a home mortgage. However, there is a way out through which you can revisit your credit requirement and can upgrade your credit value. It is possible to buy a home after bankruptcy, if you follow some important steps.
The Bankruptcy Discharge: This is provided to you by the bankruptcy court. It will never make you liable for any debts once you have it. Similarly, no creditor can claim any payment once you have the discharge. Though your case doesn’t end here, but it will let lenders to take a chance on you right away.
Your Credit Report: Credit report functions as a determinant of your creditworthiness. Despite of the fact that you have bankruptcy charges, you need to ensure that your credit report is regularly being updated and is accurate. You are also entitled for a credit report from credit rating agencies every year. Make sure there are no debts that are already repaid or discharged. If you will find any such case on your credit report, contact the credit agency for the immediate support, as it should be corrected as soon as possible.
Wrong/ Outdated Information: It can come in many forms. For example, wrong name, address and social security number. Due to similar name or identity theft the account information is not valid. Any information about former spouse, or any outdated information. Misleading accounts, for example, you closed your account and your history shows that the creditor has closed it. Your personal account that is not part of bankruptcy but listed in the same list.
You can still up your credit value and qualify for a mortgage. Since, bankruptcy can limit your credit options, but with options like installment loans and secured credit cards, you can make your way back and can rebuild your creditworthiness. Last but not least – patience is a key. You should ensure that you are doing the right financial planning without losing hope that you can’t buy homes as the option of buying home after bankruptcy is not a tough case anymore.