If you’re considering bankruptcy, you may be wondering, “What property can I own after bankruptcy?”  Unfortunately, many people believe that you cannot own anything after bankruptcy.  This is completely false.  After bankruptcy you are free to own anything you like.  Any new property or possessions acquired after bankruptcy are completely yours.  You are also allowed to keep any property that was excluded from the bankruptcy.

To prevent abuse, three minor exceptions exist.  These exceptions are: inheritances, property settlements, and life insurance benefits.  If you receive a property settlement, inheritance, or life insurance benefit within 180 days after filing for bankruptcy, the property or money may have to be paid to your creditors.  Aside from these three exemptions, you are free to own anything you like after bankruptcy.

Would you like to own a home after bankruptcy?  Home ownership is possible – however, you will usually have to wait for a certain period of time before lenders will work with you.  Depending on the factors involved, you can qualify for a home loan beginning two years after a Chapter 7 bankruptcy has been discharged.  For a Chapter 13 bankruptcy, you typically need to wait only one year after filing.  FHA mortgage loans and VA mortgage loans can be acquired as soon as one year after filing for either Chapter 13 or Chapter 7 bankruptcy. In order to qualify for financing to own a home, car, or other large-ticket item, you will need to re-establish good credit.

After bankruptcy, you are free to buy a new car and open new checking and savings accounts.  Assuming you have not bounced a lot of checks in the past, anyone can open a new checking account after filing for bankruptcy.