Many people think that if they need debt relief help then their finances will never be the same. They may believe that filing for bankruptcy will mean that they are never able to buy a home or car or get a difficult type of loan. Fortunately, that is not the case, and taking this route may help many struggling Louisiana residents.
If individuals qualify for and successfully complete a Chapter 13 bankruptcy case, they will repay their outstanding debts through a court-approved plan. Because the debts are repaid, this type of bankruptcy does not have as big of an impact on one’s credit score as Chapter 7. As a result, individuals who complete Chapter 13 still have a good chance of qualifying for a conventional loan. However, they will need to wait the required amount of time before applying, which is four years from the dismissal date if the case is dismissed or from the date of filing if the case is discharged.
If individuals are looking for a mortgage loan after bankruptcy, it is important to keep in mind that there are different types of loans. For some, an FHA loan may be best because it has lower credit requirements than other types of mortgage loans. Additionally, after completing a Chapter 13 case, there is no wait time to apply for an FHA loan after discharge or dismissal.
It is understandable that people are worried that bankruptcy will have negative effects on their credit. However, it is important that these individuals also have the right information on the benefits of that process and how quickly they can bounce back after completing a case. It may be wise for interested Louisiana residents to gain reliable information from local legal resources.