Many of our readers in New York know that during the so-called “Great Recession” one of the biggest issues was the when the housing “bubble” burst. As the economy started to crumble at the end of 2007 and into 2008, Americans saw billions in investment holdings disappear. But, it wasn’t until the value of homes started to crater soon after, that individuals and families in New York and throughout the country really began to feel the most serious impact of the recession. For millions of people, that meant filing for bankruptcy.
But, now that it is 2017, many of those people who filed for bankruptcy several years ago will finally begin to see those filings disappear from their credit reports. Many of our readers may know that the “black mark” of a bankruptcy stays with the filer for several years, but one of the benefits of filing for bankruptcy is that this financial red flag doesn’t last forever.
So, what does it mean that millions of Americans will have a revitalized credit score after all these years? Well, according to one recent article, it may trigger a new wave of home buying. The recent article noted that the number of Chapter 7 bankruptcies in America peaked in 2010. Now, those same individuals and families, presumably with rebuilt credit scores, may look to take advantage.
But, our readers who may be in this type of situation need to remember that buying a home is one of the biggest financial decisions that most people make. They need to make sure that they are set up for success in this regard, or it may just lead to another bankruptcy filing.
Source: housingwire.com, “Disappearing bankruptcies could start new wave of homebuying,” Kelsey Ramírez, May 30, 2017
