Bankruptcy

If you have gone through bankruptcy, you may be wondering whether buying a house is still possible. In many cases, the answer is yes, you can get a mortgage after bankruptcy.

If you’re thinking about bankruptcy, you’re probably trying to answer one simple question: will this actually help, or will it create a new set of problems?

Chapter 7 and Chapter 11 are both federal bankruptcy options, but they are designed for very different financial situations. Chapter 7 focuses on liquidating certain assets to eliminate eligible debts, while Chapter 11 centers on reorganizing debt through a structured repayment plan.

Not everyone qualifies to file for bankruptcy. While bankruptcy can provide relief for people overwhelmed by unsecured debt, certain financial situations, past filings, or actions may disqualify you from being eligible.

Getting in debt is something that many people face because hardships and unexpected life events can happen to anyone — after all, we’re all humans! The goal for people in debt is to stabilize their personal finance and live a debt-free life. When you feel overwhelmed by debt and simply can’t repay it with your existing income, then you can either seek debt relief or file for bankruptcy.

Some may view bankruptcy as a reasonable and common way out of debt and an opportunity for a fresh start. The damage bankruptcy does to your finances, however, is life-disrupting and lasting.