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The loss of a job, a medical crisis or just mounting debt can often make one feel as if all hope is lost. As the bills continue to build, the Tennessee resident’s hopes and dreams appear to dwindle. However, this does not have to be the case. For many, filing for bankruptcy can actually be the beginning of rebuilding one’s hopes, dreams and financial picture.

One of the greatest fears associated with bankruptcy is that the individual will lose his or her home and never be able to qualify for another mortgage. First of all, as long as the individual has enough income to make mortgage payments, it may be possible for the mortgage to be reaffirmed and the home retained. Additionally, in many instances, the individual is eligible to apply for a new mortgage within a few years of the bankruptcy being discharged. The waiting period to be able to apply for an FHA mortgage is just two years while the waiting period for a conventional loan is only four years.

Once the bankruptcy has been discharged, the individual will want to begin the process of rebuilding his or her credit. The first step in this process is to make timely payments on all outstanding accounts. It will also be important to show that the individual knows how to manage credit; this can be done by opening a secured credit account, maintaining a low balance and making timely payments.

For many Tennessee residents, filing for bankruptcy can offer the opportunity to start over financially. The individual is then able to make prudent financial decisions that will allow his or her dreams to become reality. Experienced legal counsel can assist in reviewing one’s financial picture and recommending the appropriate strategy to meet the individual’s particular needs. Contact the Arnold Law Firm for help.