4. Buying a house
Sounds like the perfect time to go looking for a house, right? With no debt hanging over your head after a Chapter 7 discharge, it feels like you have more of each paycheck to spend on things like a new house. Unfortunately, you are still unable to participate. If you are using a VA loan, you will have to wait two years from the time you filed for bankruptcy before trying to buy a home. A more traditional loan will require a four-year waiting period. However, do not despair. In the meantime, you can start to build up your down payment. Take the amount you would like to spend on a home payment each month and put it into a dedicated home purchase account. In four years, you will have a substantial down payment that will make it much easier for you to obtain the loan you want.
5. Going back to your old lifestyle
You have more money available now that you’ve reduced or eliminated your debt, but that doesn’t mean you need to dive right into your old lifestyle. Remember, those overspending habits are what bankrupted you in the first place. Take the time to develop good spending habits and wait for your employment status and income to change before trying to meet those standards again.
Filing for bankruptcy after hiring Chapter 7 attorneys is a scary time in your life. Rebuilding when it’s over can be even more difficult. For more tips and tricks on managing your finances after bankruptcy, contact us today.