Many consumers who find themselves struggling with serious levels of debt that they cannot repay may consider filing for bankruptcy but feel scared about doing so.

One reason some people fear bankruptcy is the belief that they may never buy a home or get credit again. Actually, filing for Chapter 7 or Chapter 13 bankruptcy may well open the door to a healthy and positive financial future that even includes home ownership.

Post-bankruptcy waiting periods for mortgages

As explained by Rocket Mortgage, consumers may well qualify for good mortgages even with a bankruptcy in their past. In most situations, a certain period of time should elapse before a new mortgage application may be approved. The length of time a person needs to wait before obtaining a mortgage after bankruptcy varies in part based on the type of bankruptcy they filed.

The waiting period for a mortgage after a bankruptcy starts from the time the dismissal of debt occurs. A Chapter 7 dismissal may be received in a matter of months. A Chapter 13 bankruptcy dismissal comes at the completion of the plan which lasts anywhere from three years to five years.

Type of loan matters

The Mortgage Reports indicates that the type of loan a person applies for may also contribute to how long they need to wait before qualifying for a post-bankruptcy mortgage. FHA loans or VA loans may have shorter wait periods than standard conforming loans, for example. If the consumer experienced a foreclosure as well as a bankruptcy, the foreclosure may also play into the total wait period time.