Though bankruptcy and real estate seem like separate areas of both our lives and the law, the two can affect one another substantively. Almost every real estate transaction will be affected if a party has undergone bankruptcy. Similarly, purchasing more property than you can handle financially can lead to a future bankruptcy. If you have gone through bankruptcy or are considering that course of action, it is important to know the effects bankruptcy have on real estate transactions.

Bankruptcy and Future Loans: Bankruptcy remains on your credit report for about 7 to 10 years. Just because bankruptcy is on your report, however, does not mean that lenders will always deny your requests for loans. Lenders will typically decide whether to extend a loan to a party who underwent bankruptcy based on the time elapsed since filing, the credit built since filing, and the circumstances around filing. For example, if you filed bankruptcy to discharge massive debts accrued through luxuries, lenders will be less likely to extend a loan than if you had filed after job loss.

Bankruptcy and Refinancing: Similar to obtaining loans, it is hard to refinance your home after filing bankruptcy. However, if a lender sees your good faith effort while you describe your situation, they may accommodate your needs.

If you are considering filing for bankruptcy or are planning to participate in a real estate transaction, call Ross & Ross at (814) 274-8612 to let our experienced attorneys handle your case.

From offices in Coudersport, Potter County, Pennsylvania, the attorneys at Ross and Ross, LLC serve the personal injury, bankruptcy, social security disability, divorce and family law needs of Western, Northwestern, Central and North Central Pennsylvania including the communities of Coudersport, Galeton, Shinglehouse, West Branch, Smethport, Port Allegany, Bradford, Roulette, and Wellsboro, as well as Potter County, McKean County, Tioga County, Cameron County, Bradford County and other areas of Western PA and Central PA.

From offices in Coudersport, Potter County, Pennsylvania, the attorneys at Ross and Ross, LLC serve the personal injury, bankruptcy, social security disability, divorce and family law needs of Western, Northwestern, Central and North Central Pennsylvania including the communities of Coudersport, Galeton, Shinglehouse, West Branch, Smethport, Port Allegany, Bradford, Roulette, and Wellsboro, as well as Potter County, McKean County, Tioga County, Cameron County, Bradford County and other areas of Western PA and Central PA.