The amount of time a bankruptcy case takes from beginning to end is dependent on which chapter of bankruptcy you’ve filed for, and your unique circumstances that can either hasten or delay proceedings. Generally, Chapter 7 bankruptcy takes less time than Chapter 13 bankruptcies, which can be quite complex. Business owners filing for Chapter 11 will also undergo a fairly complex process, but usually tie up their lose ends faster than Chapter 13 cases.
Just because you’ve filed for bankruptcy doesn’t mean your chances of owning a house are forever in doubt. If you are otherwise able to become credit-worthy in the future, filing for chapter 7, 11, or 13 will not create a permanent roadblock for you in your home-buying ventures. However, there are some stipulations you need to know about.
Depending on which chapter of bankruptcy you filed under, 7 or 13 (which are the most consumer-centric forms of bankruptcy), determines when you’ll be eligible to purchase a home. However, there are provisions for people who have filed for chapter 11 that are worth noting if you haven’t yet declared bankruptcy. Chapter 11 allows individuals and businesses rearrange their finances and repay portions of their debt. Most plans for chapter 11 last three to five years, but it can be used to stop a foreclosure of your current home and catch up on late mortgage payments, rewrite the terms of a mortgage, and pay down tax liability without interest.