Posted by genieSABRE on Aug 20, 2012
Life after Bankruptcy

Life after Bankruptcy

There is life after bankruptcy for first time home buyers

Source: Hannif Highclass c/o Genie Sabre Realty Inc.
Publish:MY BLOG: Toronto Real Estate: August 20, 2012

Bankruptcy doesn’t mean the end of the dream for first time home buyers


Filing for bankruptcy is not the financial disaster that sweeps away your credit freedom for the rest of your life. But getting your credit back on solid ground takes diligence and discipline.

Bankruptcy can offer a fresh start to individuals with overwhelming debt who are seeking ways to brighten their financial horizon. But, improving your credit standing, like diminishing your credit standing, happens over a period of time.

While bankruptcy remains on credit reports for years, if you maintain a good credit history after filing for bankruptcy some lenders often times extend credit for auto and home loans 18 to 24 months after a bankruptcy discharge.

Under Chapter 7, also referred to as “liquidation bankruptcy,” you pay nothing to unsecured creditors, but may be required to liquidate non-exempt assets (like a house or car worth more than a certain amount).

Under Chapter 13, often called a “wage-earner’s plan,” means you pay back a portion of your debts over a period of time and are not required to liquidate assets. The recent revisions in the bankruptcy laws “essentially” require that if you have a job you will probably be forced to file Chapter 13.

Consult a Lawyer to determine the option that most applies to your individual situation.

Now the good news, bankruptcy doesn’t have to be a life sentence for first time home buyers.

Watch Video (below) – 5 Strategies to raise your credit score fast  OR Click link to the blog

For home loans, CMHC guidelines require two years with a clean payment history subsequent to the bankruptcy (Chap 7) and the establishment of new credit. All credit after a bankruptcy is considered new, so any accounts you don’t include may help you meet this criteria.

For a chapter 13 bankruptcy, once you are more than halfway through, made all your payments on time and have approval from the trustee you may be eligible for CMHC financing. You’ll find some lenders have “overlays” that treat Chapter 13 like Chapter 7.

If you were one of the thousands of people that filed for bankruptcy in 2011, you’ve been given a “do over” and like all “do overs”, learn from your mistakes.

genieSABRE Realty has helped dozens of families buy their first home after bankruptcy and they all have one thing in common, they contacted genieSABRE @ 416-444-4252.


5 Ways of Coping With the Emotional Backlash of Bankruptcy?

  • It’s Okay to “Feel”    Take some time to let yourself experience feelings of sadness, anger, loss, shame, etc. Come to terms with those feelings, and in time, let go of those feelings and move forward
  • Learn From Your Mistake   Take steps to ensure your future financial security. Make a budget, etc. This effort to stay smart about money will only help your self-esteem, and it will prevent you from feeling sorry for yourself.
  • Learn New Skills to Protect Your Financial Well-Being    If you lose your job in tough economic times, your resume is going to have to stand out from all of the other folks looking for jobs. Learning new skills will help 
  • Learn to Detach Yourself Self-Worth from Material Wealth   Many people look down on others for not driving a state-of-the-art car, or not having the large plasma TV. We’ve forgotten what happiness should be: family, friends, sharing with others, and new experiences. You shouldn’t need everything your neighbor has in order to be happy.
  • Practice Self-Compassion    Let go of resentment and blame you have for yourself. Although you might feel that filing bankruptcy means that your life is over, you should really see it as a fresh start.

    If you’re having serious financial difficulty, and are experiencing many of these issues, don’t hesitate to contact genieSABRE, they will refer you to a highly experienced bankruptcy law firm in Toronto.
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Call: Hannif Highclass @ 416-444-4252



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