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Answering your bankruptcy questions.

Posted at 3:15 PM, Mar 08, 2018
and last updated 2018-03-08 18:15:06-05

This article is written by Peters and Associates.


Is bankruptcy the only way to stop a foreclosure?

No. While filing a bankruptcy will stop or delay a foreclosure, it is not the only way.

Foreclosure sale dates often can be stopped by submitting a completed loan modification, short sale or deed-in-lieu of foreclosure package to your bank. That’s because under the National Mortgage Settlement and Nevada Homeowner’s Bill of Rights, your bank is not allowed to “dual track,” meaning the bank can’t foreclose at the same time it is reviewing a “foreclosure alternative,” such as a loan modification, short sale or deed-in-lieu of foreclosure.

Often, a good lawyer can get a sale date postponed or even reversed, even within days of the scheduled foreclosure.

I heard that after a bankruptcy, you can’t ever buy a house or car again, is that true?

No. While a bankruptcy will stay on your credit for a number of years, and when applying for a loan you typically will have to disclose that you filed a bankruptcy in the past, you still can regain good credit and qualify for loans. In fact, it is possible to build your credit score to 700 within two years after completing your Chapter 7 bankruptcy and even qualify for some home loans one year after your bankruptcy.

With patience and a little work, you’ll be surprised at how quickly your credit can improve after a Chapter 7 bankruptcy. In fact, some bankruptcy attorneys even help clients rebuild their credit scores for free when the bankruptcy is complete. Life goes on after bankruptcy.

Tips for rebuilding credit after bankruptcy

- Review your credit report and make sure there are no errors or inconsistencies.

- Have patience. Applying for too much credit too quickly will hurt you in the long run.

- Be vigilant with your finances. Create a realistic budget and pay all bills on time.

If you have a question you’d like to see answered by an attorney in a future issue, please write to us at

Please note: The information in this column is intended for general purposes only and is not to be considered legal or professional advice of any kind. You should seek advice that is specific to your problem before taking or refraining from any action and should not rely on the information in this column.