Homebuying After Bankruptcy Atlanta GA

1. Chapter 7 versus Chapter 13. There are two ways of filing for bankruptcy. Chapter 7 refers to a voluntary or involuntary situation where the debtor is allowed to liquidate his assets in an methodical way. It is also known as a "straight bankruptcy." In this instance, a trustee is assigned to the case. He collects all nonexempt assets, sells them, and gives the proceeds to creditors. Individuals, as well as corporations and partnerships, can declare bankruptcy. Chapter 13 allows the debtor to keep property (if owned) and to provide creditors with periodic payments. Only individuals can apply for this type of bankruptcy. Chapter 13 debtors do not liquidate all their assets; it is a program that reschedules an individual's debt through a payment plan.
   
   
2. Clean up your credit. The first step toward homeownership is to clean up your credit report. To do this, you may want to consult a specialist, as it can be a harrowing task of navigating through phone numbers and following the many loan transfers that may be on your report. Changes made to your report are not instantaneous; in fact, it usually takes a year to really see results. If you indicate and/or show some proof to your lender that you are fixing your credit, he may take that into account when running your numbers. The credit bureaus will usually need at least 6 months to update your report. Resources online can be useful. Try Nolo.com for information about how to clean up your credit report.
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Author: Grace Bloodwell