Can Bankruptcy Keep Me From Buying a House?

After the mortgage crisis of a few years ago, it is more difficult for people to obtain a home loan. This is especially true for people with credit issues. So if you aren’t a home owner and are considering filing for bankruptcy, you might be concerned about your chances of buying your own home. Though having a bankruptcy on your credit report might be a set back, it is not something that can keep you from ever owning a home.

Unfortunately, many lenders will not give someone a loan for two or three years after they’ve filed for bankruptcy. However, think of this as an opportunity. After the financial relief that bankruptcy offers, you will be in a much better financial position. You can take advantage of the two-year waiting period to rebuild your credit. You can also use that time to save money for a down payment on your home loan. A good down payment can help increase your chances of getting approved for a home loan and may even get you a better loan rate. On top of that, having a down payment means you will start off with equity in your new home, which will make it easier to resell, if that is what you want to do.

Filing for bankruptcy, while serious, is not the end of the world. It does not mean the end of your dreams, even the dream of owning a home. If you need help, don’t hesitate to call us. At Behm Law Group, our attorneys specialize in helping people just like you get back on track to achieving their dreams.

When You Can’t Afford Your Payments

You’ve heard it stated time and time again until it repeatedly drones in your head like a mantra; just make a budget and live within your means. At Behm Law Group we agree that everyone should live within their means and that keeping a budget makes financial sense. It sounds simple enough – just spend less than you make. But for some folks, through no fault of their own, it isn’t just that simple. What do you do when you add up all of your expenses and find your income is simply not enough? How do you decide between paying a bill, buying groceries, or getting a prescription refilled? Who can you turn to when an unexpected medical situation puts your thousands of dollars into debt? These are serious problems, but there are options you can pursue if you find yourself in these situations.

There are organizations that can negotiate with your creditors to reduce your payments and interest. However, you have to be careful that the organization you choose is legitimate. Also, depending on the amount of money you owe, the newly negotiated terms might still be more than you can afford, assuming that your creditors are willing to negotiate. While this option works for some people, it isn’t for everyone.

Another option is to file for bankruptcy. Bankruptcy might be the last thing you want to do but the only viable option available to help you emerge from beneath a mountain of debt. At Behm Law Group we understand that bankruptcy is not something you should enter into lightly. However, bankruptcy law was created for people such as yourself―people in a bad situation who need a fresh start.

No matter how frugally you live, your bills can still overwhelm you. Getting out of your financial distress is not as simple as repeating a mantra. Sometimes you need help from someone who cares. At Behm Law Group, LTD, we limit our practice to bankruptcy law. Our Minnesota bankruptcy attorneys will treat you with the respect you deserve.

The Dangers of Filing Pro Se

We live in a do-it-yourself society. You can find information on the Internet for doing everything from changing your engine oil to playing a jazz riff on the piano. However, there are some things you probably don’t want to do yourself—things only an expert should do. Unless you’ve been trained and have the right tools, you wouldn’t replace the transmission on your car. You definitely wouldn’t want to pull your own wisdom teeth. Likewise, just because do-it-yourself information and kits are available doesn’t mean filing for bankruptcy is something you should attempt on your own. If you file and proceed through bankruptcy without an attorney, you will be attempting to wade through the legal process on your own behalf, known in legal terms as Pro Se.

Filing for bankruptcy is a complex process. There are many legal hoops to jump through and pitfalls to avoid as you maneuver through the process. If you don’t do everything absolutely correctly, you can lose your rights, your property, or even have your case dismissed. Do you know with absolute certainty if you should file for Chapter 7 or Chapter 13? Do you know if you passed the means tests for Chapter 7? Have you completed the pre-filing credit counseling? Are you aware of the things you can or cannot do before or during a bankruptcy that can create additional legal problems?

Why try and go it alone through the legal system when a bankruptcy lawyer can help you avoid actions that will get you in trouble or even land you in jail. As your representative throughout the entire process, Behm Law Group will ensure that you have completed all the necessary steps to navigate and finish the bankruptcy successfully.

While filing Pro Se might seem like a way to save some cash, it is not worth it. Instead of going Pro Se just go with the proven professionals. At Behm Law Group we limit our practice strictly to bankruptcy law. It is stressful enough to be in financial distress. You don’t need the added stress of filing on your own and representing yourself. You can rely on Behm Law Group to make your filing successful and as stress-free as possible.

The Hopelessness of Making Minimum Payments

There’s a reason that the minimum payment on a credit card is so low, and it isn’t because the big credit card companies care about you or your finances. The minimum payment on a credit card may be convenient for you, but it’s designed to keep you in debt and making additional payments to them for years. Not only that, as you continue to pay the minimum payment, the credit card companies reap obscene profits from you as you struggle to make ends meet. Long-term periods of minimum payments from you equal big interest income and profits for them. Here are some examples of what making the minimum payment will do to you:

  • If you owe $1000 at 18% interest, it will take you 8 years to pay off your card. You will have paid $863 in interest.
  • If you owe $1000 at 21% interest, it will take you 10 years to pay off your card. You will have paid $1,398 in interest.
  • If you owe $3000 at 18% interest, it will take you 26 years to pay off your card. You will have paid $6,863 in interest.
  • If you owe $3000 at 21% interest, it will take you 47 years to pay off your card. You will have paid $15,398 in interest.

If you find yourself in a position in which you can only make minimum payments, you will most likely never get out of debt. If you want to see how long it will take to pay off your credit cards, you can use the Credit Card Repayment Calculator at:

As you can see, the credit card companies have a powerful advantage over you. If you get stuck in their snare, you might never get out. However, bankruptcy laws were written to help people like you get out of the cycle of credit card debt. If you are in trouble, contact the Minnesota bankruptcy attorneys at Behm Law Group LTD. We will help you determine if bankruptcy is the best option for you.