So you have been there too. Bankruptcy filing is a thing hard to forget but people weather through the ups and downs and move on to find a better life. It has always been like this. Then again bankruptcy is not the end of the world in itself though signifies something comes to the end and gives you a fresh start. Hard as it is as the word connotes a failure in business, if you just have enough of a reason to push through with your energy channelled into the right direction again, that means soon you will be on the right track again. After a final verdict has been heard several years are needed for you to spring back and land on two feet firmly again.
How Long Do I Have to Wait?
Conventional lenders require you to wait at least four years while with FHA and VA loans the wait is reduced by half. Two years will be gone in a blink of an eye and so in the meantime it is recommendable to devise some sort of strategy if only to regroup and keep the depression at bay. An in depth analysis of the errors committed and a sober look at one’s failings could backfire but also perversely a peace of mind. If there were bigger forces at work that had caused your business to fold up then no one is to blame. There have been thousands in a similar situation.
Stay out of the Limbo
Two years are the necessary transition period for you to pick up the pieces and return to some normalcy while renting a place. If you were self employed the ego took a huge hit so some counseling and family support would be recommendable as you go job hunting or outline the basis for a new venture. If you did have a job but filed for bankruptcy overwhelmed by the piling payments and unable to manage them responsibly for whatever reason, the wait is to do the same, simply reinvent yourself to shake off that feeling of despair. It will pass as everything else. At least you are lucky enough to keep your job, though feeling ill at ease when unable to invite your friends over like you used to. You have to start anew concentrating on your credit rating where the information on the bankruptcy will remain for 10 years. You won’t be allowed to file again for bankruptcy for the next seven years, but who would want that anyway.
Finding a job, switching careers, making some savings to recover financially and mentally are your goals for those two or more years. Once you arrive at the safe place, repeat the very same process you had when applying for the mortgage loan the first time. If you had applied with a conventional lender, you could now try your luck with FHA backed up loans aimed at people in your predicament. Remember this: mortgage loans for bankrupt people are possible, but you just need to wait.