Attorney Cordero Talks Home and Car Buying After Bankruptcy

When going through bankruptcy, rebuilding credit and finding the right mortgage plan are as important as finding the right home and vehicle. Real Estate Lawyer Patrick Cordero has years of experience with South Florida bankruptcy filings and is ready to help you explore your legal options.

Whether you are looking for financing on a new car or home, you do not need to wait the 10 years it takes for the penalty to be removed from your credit history. In fact, the penalty will decrease over time and you can recover your credit score in the meantime by taking out a car loan or mortgage. Be sure to pay all bills on time, get your budget under control, and build trust with your financial institution.

There are two forms of personal bankruptcy, chapter 7 and chapter 13, that can result in assets like your car and home being taken by banks, sold and reduced to cash. After filing for chapter 7 bankruptcy, all of the debtor’s nonexempt assets are liquidated and distributed to the creditors. The exemptions include salaries and wages earned after the filing, but will not relieve you of child support, alimony or student loan obligations.

Chapter 13 bankruptcy requires employed parties who are overwhelmed with debt to come up with a payment plan that is to be approved by a judge. This can reduce the amount owed each month and spread out payments over a longer period of time. This is one way to avoid foreclosure on our house but can affect future mortgages and loan opportunities.

There are many mortgage products including The Federal Housing Administration (FHA) and The Department of Veterans’ Affairs (VA) that provide loans to those who have filed for bankruptcy.

FHA loans are backed by the Federal Government and offers those with damaged credit scores the opportunity to get a home. Qualification for this includes waiting two years after the discharge date of your bankruptcy and a required down payment of 10% of the purchase price if your credit score is below 579. Scores of 580 or above can qualify for as little as 3.5% down.

To qualify for a VA loan, you must be an active member of the military or a veteran. Benefits include no down payment and competitive interest rates, however, qualification also requires a minimum of two years after the discharge date.

For more information about filing for bankruptcy in South Florida or life after bankruptcy, talk to an experienced bankruptcy lawyer in Miami.

About Law Offices of Patrick L. Cordero

Patrick Cordero is a bankruptcy, foreclosure, and modification lawyer in Miami, Florida. A vast majority of his cases involve people with financial issues in bankruptcy, real estate and foreclosure, and family law. He has been in business for more than 30 years. In terms of bankruptcy filings, they are the largest law firm in the State of Florida.