Legal Question in Bankruptcy in Minnesota

Re: How long till I'll have credit?

I get this question a lot and the answer is it depends.

I have some clients who quickly rebuild their credit following a bankruptcy and others who never do. If you already have a car loan and you faithfully pay it even though you have filed bankruptcy, your credit to get another car loan is usually pretty good - especially with the lender who you coninued to pay. The same can be said with regard to a mortgage if you already have one.

If you are a first time buyer it's another situation. You have no history of paying an earlier mortgage - this will make a difference even if you have no bankruptcy but more of a difference if you have filed.

I keep hearing from mortgage brokers who say they can get mortgages for my bankruptcy clients. It's not that bankruptcy people can't get mortgages, it's just that they probably don't qualify for the best interest rates.

Depending on your situation, if you really need to file bankruptcy, the filing might actually improve your credit, beacause all the the debts are gone and you can't file for another six years.

Depends on what your credit looks like now - depends on compared to what.

Here's what I think you should do. Call some mortgage brokers. Tell them what's on your mind. Find out what you would be eligible for with a bankruptcy filing and without. Then you would know. There are lots of brokers out there who would be willing to discuss the question. Call them anonymously if you wish. (Instructions for turning off your caller ID identity are in the front section of your phone book.)

Good luck.

This response is for general information purposes only and does not create an attorney-client relationship. You are advised to seek the advice of the attorney of your choice concerning the details of your case.

Re: How long till I'll have credit?

Typically, an individual can file a chapter 7 and rebuild thier credit so they can purchase a house at the lowest possible interest rate in about two years. The person will have to take the needed steps in rebuilding thier credit but that is all after the bankruptcy. The key is to file and clean up your credit first, then work hard to rebuild your credit.

If your interested in learning more or a free consultation, feel free to give me a call at 651-628-9929 and my office would be happy to set up an appointment to discuss your options.

Very truly yours,

Jeff Bursell