Arizona Bankruptcy Lawyers Looking Out for Your Future
There are no hard-and-fast rules regarding how long it takes to rebuild credit or obtain a loan after bankruptcy. Conventional wisdom has been that it can take one or two years in order to be able to buy a car at a decent interest rate following bankruptcy, and three or four years in order to buy a home.
With the recent economic upheaval and collapse of the housing market, many things are still up in the air. Our clients in Phoenix were hit especially hard by the recession, and those in Mesa are feeling the same pressures.
Unfortunately, this means it is difficult to say with any certainty how long it will take after a bankruptcy to qualify for a home loan at a decent interest rate. The good news is that, even during these difficult times, we are still seeing many of our clients' credit scores actually improve shortly following bankruptcy.
This may seem counterintuitive, but consider the fact that credit scores are a complex calculation based on a number of factors like income, total debt, total credit available and the number and value of charge offs. While bankruptcy will almost certainly increase the amount of charge offs on your record, it may also substantially reduce the total amount of debt you owe, thus potentially raising your overall credit score.
If buying a home after bankruptcy is a major concern, rest assured. While it may take some time — and while a lot may depend upon the consumer credit and real estate climate in the coming months and years — there is no reason why a bankruptcy should be an insurmountable obstacle to obtaining a home loan at an attractive interest rate.
To discuss your situation in detail, contact the Clark Law Offices in Phoenix, Mesa and Glendale for a free consultation with an experienced bankruptcy attorney.
We help people throughout the entire state of Arizona with offices in Phoenix, Mesa and Glendale.
