Re: Bankruptcy and Home Ownership
Once they receive a discharge in their bankruptcy, as lets-retire says, there will be no more court involvement or trustee involvement in any borrowing decisions. A lender will want to have a copy of the discharge papers.
The only remaining issues are credit issues. My experience, which is now dated by several years, was that most lenders would finance a home purchase 2 years after a discharge provided that post bankruptcy credit was good. However, subprime lenders and local lenders with a relationship with the debtors may be willing to make a loan right away but at a higher cost.
As Brewer said, the one good thing about chapter 7 bankruptcy is that you no longer owe money, so some lenders are actually anxious to lend to you. Especially because you can't file a chapter 7 again for 6 years. Post bankruptcy credit card solicitations are common. However, it is generally harder to get a loan to buy a house.
No more lawyer stuff, no more political stuff, so no more CYA