{"id":7320,"date":"2016-10-06T01:00:12","date_gmt":"2016-10-06T05:00:12","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=7320"},"modified":"2016-10-05T09:33:08","modified_gmt":"2016-10-05T13:33:08","slug":"can-you-get-a-mortgage-after-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/","title":{"rendered":"Can You Get a Mortgage After Bankruptcy?"},"content":{"rendered":"

Around the age of four years old, most of us begin attending school. We\u2019ll remain there until the age of 18, when we may choose to continue our studies in college. Given we spend roughly 10 months of each year in an institute of learning, you\u2019d think there\u2019d be ample opportunity to teach kids about personal finances, budgeting, loans, investing and savings. But while these are topics most people say they\u2019d love to learn more about, they are rarely touched on in school.<\/p>\n

As we continue to learn about life, this lack of financial literacy can come back to haunt us. We learn our parents cannot pay our way forever. Here is where we enter the world of car loans, personal lines of credit, and credit cards, relationships, travelling, and consumer goods. We use credit cards to spend money we really don\u2019t have. We use them again, and again and again, and so on.<\/p>\n

Debt begins to pile up; the job just isn\u2019t paying enough, the minimum payments cannot be made, items go to the collectors, the phone stops working, and now you are in serious trouble. So what do you do?<\/p>\n

For some, a consumer proposal or bankruptcy are the only options. But what is the difference between these methods \u2013 and how will they impact your chances of buying a home<\/a> later on?<\/p>\n

The Difference Between a Consumer Proposal and Bankruptcy<\/h2>\n

A consumer proposal<\/strong> pays off a portion of the total debts through a trustee. There are agreed-upon payments over a set payoff timeline, and the creditors stop calling. You can breathe now – but your personal credit bureau history is in shambles until the debt is finally discharged.<\/p>\n

A bankruptcy<\/strong> is a Federal court legal proceeding involving a person or business, with the condition of financial failure: not having the money required to pay debts.<\/p>\n

The term bankruptcy is from the Italian phrase banca rotta<\/em>, meaning \u2018broken bank\u2019, which stems from the custom of breaking a moneychanger\u2019s bench to signify his insolvency.<\/p>\n

What\u2019s noteworthy is that student debt is very unlikely to be part of bankruptcy; similar to a consumer proposal, you agree to make payments through a trustee for a particular time and your personal credit is negatively affected until the time the bankruptcy is discharged.<\/p>\n

Is it Possible to get a Mortgage after Bankruptcy?<\/h2>\n

The answer is yes \u2013 but you\u2019ll face additional restrictions. Depending on your credit agency, a bankruptcy will remain on your credit report between six and seven years. Once a bankruptcy or consumer proposal is discharged, many lenders require an additional two years\u2019of time with two active trade lines such as credit card, loans, line of credit, another credit card, etc.; plus no<\/em> late payments and liabilities that are in good standing.<\/p>\n

Related Read: Tougher Mortgage Rules are Coming\u2026 Very Soon<\/a><\/strong><\/p>\n

Doing so can regain the A-credit status needed to access the best mortgage rates, and make a minimum of 5% down payment;
\nOR
\nIf a late payment has been made, but the borrower has two active trade lines, they can make a 10% minimum down payment with higher rates;
\nOR
\nIf the borrower has only one trade line, had made late payment(s), has a low credit score, etc., they\u2019ll need to pay at least a 35% down payment, and will only be able to access high mortgage rates, short terms, additional fees, possible \u2018private\u2019 financing with even higher rates and additional fees.<\/p>\n

Before You Try to Borrow Again<\/h2>\n

It\u2019s important to assess the reasons for claiming a consumer proposal or bankruptcy in the first place. If it was for reasons such as overspending, a marital split, business breakdown, illness, death in the family, etc., be prepared to take some time to get your life back in order. Try to save some extra cash, and to adjust your spending habits to avoid credit trouble in the future.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Around the age of four years old, most of us begin attending school. We\u2019ll remain there until the age of 18, when we may choose to continue our studies in college. Given we spend roughly 10 months of each year in an institute of learning, you\u2019d think there\u2019d be ample opportunity to teach kids about […]<\/p>\n","protected":false},"author":44,"featured_media":7321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[3,76],"tags":[1030,1027,1031,1032,1028,1029],"class_list":["post-7320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ask-the-pros","category-buying-a-home","tag-a-borrower-mortgage","tag-bankruptcy","tag-canwise","tag-mike-bricknell","tag-repairing-credit","tag-subprime-mortgage"],"yoast_head":"\nCan You Get a Mortgage After Bankruptcy? | Zoocasa Life<\/title>\n<meta name=\"description\" content=\"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can You Get a Mortgage After Bankruptcy? | Zoocasa Life\" \/>\n<meta property=\"og:description\" content=\"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoocasa Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Zoocasa\" \/>\n<meta property=\"article:published_time\" content=\"2016-10-06T05:00:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-10-05T13:33:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2016\/09\/Bankrupt.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mike Bricknell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:site\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mike Bricknell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\"},\"author\":{\"name\":\"Mike Bricknell\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/eb6bc39495ec8f14fcfbb3cfa5ca9319\"},\"headline\":\"Can You Get a Mortgage After Bankruptcy?\",\"datePublished\":\"2016-10-06T05:00:12+00:00\",\"dateModified\":\"2016-10-05T13:33:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\"},\"wordCount\":660,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"keywords\":[\"a borrower mortgage\",\"Bankruptcy\",\"Canwise\",\"Mike Bricknell\",\"repairing credit\",\"subprime mortgage\"],\"articleSection\":[\"Ask the Pros\",\"Buying a Home\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\",\"name\":\"Can You Get a Mortgage After Bankruptcy? | Zoocasa Life\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\"},\"datePublished\":\"2016-10-06T05:00:12+00:00\",\"dateModified\":\"2016-10-05T13:33:08+00:00\",\"description\":\"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoocasa.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Can You Get a Mortgage After Bankruptcy?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"name\":\"Zoocasa Blog\",\"description\":\"Home Buying & Selling Tips, Real Estate Market Trends & News\",\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\",\"name\":\"Zoocasa\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"contentUrl\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"width\":800,\"height\":800,\"caption\":\"Zoocasa\"},\"image\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Zoocasa\",\"https:\/\/twitter.com\/Zoocasa\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/eb6bc39495ec8f14fcfbb3cfa5ca9319\",\"name\":\"Mike Bricknell\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/3284c2d08f7648330ee9ee62268e3daab79c3e84f933ff5a32f0e7965d07de93?s=96&d=blank&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/3284c2d08f7648330ee9ee62268e3daab79c3e84f933ff5a32f0e7965d07de93?s=96&d=blank&r=g\",\"caption\":\"Mike Bricknell\"},\"description\":\"Mike is a Mortgage Agent with Canwise Financial and has been working in the mortgage industry since late 2008. Mike does his best to stay updated with the latest mortgage related news, and passes along sound advice to his centres of influence to build better, long lasting business relationships. Contact Mike today to serve your mortgage lending needs at mike@canwise.com .\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/author\/mike-bricknell\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Can You Get a Mortgage After Bankruptcy? | Zoocasa Life","description":"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/","og_locale":"en_US","og_type":"article","og_title":"Can You Get a Mortgage After Bankruptcy? | Zoocasa Life","og_description":"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.","og_url":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/","og_site_name":"Zoocasa Blog","article_publisher":"https:\/\/www.facebook.com\/Zoocasa","article_published_time":"2016-10-06T05:00:12+00:00","article_modified_time":"2016-10-05T13:33:08+00:00","og_image":[{"width":600,"height":400,"url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2016\/09\/Bankrupt.jpeg","type":"image\/jpeg"}],"author":"Mike Bricknell","twitter_card":"summary_large_image","twitter_creator":"@Zoocasa","twitter_site":"@Zoocasa","twitter_misc":{"Written by":"Mike Bricknell","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#article","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/"},"author":{"name":"Mike Bricknell","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/eb6bc39495ec8f14fcfbb3cfa5ca9319"},"headline":"Can You Get a Mortgage After Bankruptcy?","datePublished":"2016-10-06T05:00:12+00:00","dateModified":"2016-10-05T13:33:08+00:00","mainEntityOfPage":{"@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/"},"wordCount":660,"commentCount":0,"publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"keywords":["a borrower mortgage","Bankruptcy","Canwise","Mike Bricknell","repairing credit","subprime mortgage"],"articleSection":["Ask the Pros","Buying a Home"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/","url":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/","name":"Can You Get a Mortgage After Bankruptcy? | Zoocasa Life","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/#website"},"datePublished":"2016-10-06T05:00:12+00:00","dateModified":"2016-10-05T13:33:08+00:00","description":"Is it possible to get a mortgage after bankruptcy? With careful credit rebuilding, it is possible to becoming a homeowner - read on for our tips.","breadcrumb":{"@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.zoocasa.com\/blog\/can-you-get-a-mortgage-after-bankruptcy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.zoocasa.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Can You Get a Mortgage After Bankruptcy?"}]},{"@type":"WebSite","@id":"https:\/\/www.zoocasa.com\/blog\/#website","url":"https:\/\/www.zoocasa.com\/blog\/","name":"Zoocasa Blog","description":"Home Buying & Selling Tips, Real Estate Market Trends & News","publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.zoocasa.com\/blog\/#organization","name":"Zoocasa","url":"https:\/\/www.zoocasa.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","contentUrl":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","width":800,"height":800,"caption":"Zoocasa"},"image":{"@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Zoocasa","https:\/\/twitter.com\/Zoocasa"]},{"@type":"Person","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/eb6bc39495ec8f14fcfbb3cfa5ca9319","name":"Mike Bricknell","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/3284c2d08f7648330ee9ee62268e3daab79c3e84f933ff5a32f0e7965d07de93?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3284c2d08f7648330ee9ee62268e3daab79c3e84f933ff5a32f0e7965d07de93?s=96&d=blank&r=g","caption":"Mike Bricknell"},"description":"Mike is a Mortgage Agent with Canwise Financial and has been working in the mortgage industry since late 2008. Mike does his best to stay updated with the latest mortgage related news, and passes along sound advice to his centres of influence to build better, long lasting business relationships. Contact Mike today to serve your mortgage lending needs at mike@canwise.com .","url":"https:\/\/www.zoocasa.com\/blog\/author\/mike-bricknell\/"}]}},"_links":{"self":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/7320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/comments?post=7320"}],"version-history":[{"count":0,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/7320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media\/7321"}],"wp:attachment":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media?parent=7320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/categories?post=7320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/tags?post=7320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}