Buying a home after Chapter 7 bankruptcy is entirely possible, but it may not happen right away. Florida consumers who file for Chapter 7 bankruptcy should complete the process and obtain their discharge papers before pursuing home ownership. Then, they need a good financial reorganization and credit recovery plan. Much of the path to post-bankruptcy homebuying is paved with budgeting, saving, and credit repair. Also, while the necessary steps may seem daunting to Florida bankruptcy filers, hard work yields fairly quick progress. This is especially true if you start working toward your home ownership goal immediately following your Chapter 7 discharge.
Why Chapter 7 Bankruptcy Filers in Florida Who Want to Purchase a Home Should Check their Credit Reports After Discharge
While financial reorganization, budgeting, and saving are important steps of the homebuying process, your credit comes first. Unfortunately, Florida consumers who complete Chapter 7 bankruptcies typically emerge from their filings with damaged credit scores. However, you should verify that errors on your credit reports aren’t unnecessarily dragging your credit score down even further.
Chapter 7 bankruptcy in Florida involves a complicated process. It involves the discharging of certain debts, and the reaffirmation of others. Often, debts included in Chapter 7 filings are misreported on credit reports. In many cases, filers end up with discharged debts that appear as past-due. Other times, identifying information is incorrect. Or, other inaccuracies appear as a result of misreporting by creditors or the credit bureaus.
In order to start the credit repair process, Florida consumers discharged from Chapter 7 bankruptcy should request copies of their credit reports from all three major credit bureaus. The Fair and Accurate Credit Transactions Act (FACTA) entitles all consumers to do this once every 12 months. So, a good plan is to check your credit reports right after discharge, and again when you’re ready to buy a house. Then, if you find errors on any of your credit reports at any time, call Credit Repair Lawyers of America. We clean up credit reports legally and for free.
How to Reorganize Finances, Budget, and Save for Home Ownership in Florida After Chapter 7 Bankruptcy
Going through Chapter 7 bankruptcy isn’t exactly easy. Yet, most Florida consumers who emerge from filings are relieved to have a second change with their finances and credit. Yes, the recovery period comes with challenges, but bankruptcy also gives consumers a fresh start. It’s what you do with this opportunity to begin again that makes all the difference.
Therefore, instead of falling back on old habits, create a realistic budget that includes room for savings. Use credit cards sparingly, and keep your balances at or below 30% of your spending limits. Gradually, your credit score will improve and your savings will grow. Eventually, you should find yourself in a good position to purchase your perfect Florida home. Then, when you’re ready to apply for a mortgage, get organized, and check your credit reports again.
How Florida Consumers with Chapter 7 Bankruptcy Filers Should Prepare for Mortgage Approval
All Florida consumers with Chapter 7 bankruptcies on their credit histories should have several documents ready when they apply for home loans. You will need copies of your discharge papers, your most recent credit reports, bank statements, and possibly your tax records and paycheck stubs.
Also, it is important to check your credit reports well in advance of seeking mortgage approval. This is in case there are errors on your credit reports that should come off. The truth is that lenders won’t approve you if you have open disputes on your credit reports. So, if possible, get all of your disputes handled and resolved before actively seeking home ownership.
The best way to get your credit reports cleaned up quickly and legally is to contact Credit Repair Lawyers of America in Florida. We have a team of in-house credit pros who will help you go over your credit reports and find any inaccuracies that you may have missed. Then, an experienced credit repair attorney will do whatever it takes to fix your credit issues. These services, like all of our services offered to Florida clients, are absolutely FREE.
How to Get Free, Legal Credit Repair in Florida
Don’t let errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in cases that are settled. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (813) 940-7255 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://creditrepairlawyersam.com/florida/credit-repair/.