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Yes this was a train rack we didn't see coming, unemployment the loss of income and wages decreased to a point that you can't survive on. This is leaving all or at least most of us in positions we never thought we would be in. Bankruptcy's are soring for business and personal, so the question is where do we go from here and is a Bankruptcy the right thing to do?
As I stated before its up to you and how fast your want accomplish your ultimate goal. I get a lot of questions now on how to purchase a home if you file a Bankruptcy. To begin I'm not a lawyer so you need to contact one, but from what I have been reading you can in certain circumstances. One might be if your renting and with rents going up purchasing could very well be approved, but the payment must be the same as the rent you now pay, down payment will be required and the interest rate will be higher. Not sure for re-financing a home but if the new payment is less, you may be able to but you will not be pulling money out and this would be to help you lower a payment and save money. Make no mistake you need to contact your Attorney and the trustee who will then contact the court and give you a go ahead, this may not be easy.
Most people in a Chapter 7 will need to wait for up to two years to be able to purchase. FHA is good about lending with low scores but they will want to see on time payments for two years. Understand that I have seen client's come out of a bankruptcy and end up making late payments on new credit, not good.
So now its time for you to make a decision and get back on track, your other options are once again, Debt Consolidation, Settling your debt your self and or Credit repair.
If you have questions I have answers call today 702 325-3861