Posted in Finances

Can I Purchase A House After Filing Bankruptcy? - By Steve Ciantro

Steven Ciantro is a certified credit counselor, a management representative of American Debt Enders, and a former finalist in Inc. magazine and Ernst and Young’s Entrepreneur of the Year contest. He is also a Talk-Show Radio Host and successful published songwriter and musician (his album January Tyme can be heard on YouTube), the inventor of a patented medical device, a public speaker on debt issues, and the official debt expert for motivational speaker Gail Kasper’s Top 1% Club.


While I am not a major advocate of bankruptcy, there is no question that there are times when it is the best answer to an individual’s debt problem, enabling the debtor to make a fresh start. I am primarily speaking here about Chapter 7 bankruptcy, not Chapter 13, which can be a bit more complicated.
According to a recent article from the Bankruptcy Law Network,, the FHA, in a major policy change, has announced easier rules for people looking to get a mortgage after bankruptcy. So, in the interest of keeping our readers informed with the best and most recent information in the world of debt relief, here goes.

The awesome news is that the FHA will allow a consumer to qualify for a mortgage just one year after the filing of a bankruptcy, provided other minimum criteria are met. This also includes short sales and foreclosures. The overall good news for consumers is that not just regulators, but entities from all financial areas, are realizing that we are in a new economy and it is not about to go away. The article speaks about people rebounding from the economic calamity of the last five years; however, I maintain that what they call “digging out” should more correctly be called “adjusting to a new way of living.”

Here are the new FHA housing rules:
The FHA will consider borrowers who have received a bankruptcy discharge or short sale or foreclosure more that one year prior if the borrower experienced an economic event and can document the following:
• Prior to the economic event, the borrower had good credit, and certain credit impairments were the result of a loss of employment or a significant loss of household income beyond the borrower’s control.
• The borrower has demonstrated full recovery from the event and has completed housing counseling.
It is interesting to note that they define an economic event as something that caused a financial hardship for at least six months, such as a job loss or downgrade in income from a job. These criteria are similar to those for entering a debt settlement program; however, the government definition does not currently take into account the more expansive criteria of having to care for a loved one or experiencing a sudden illness. Debt settlement does take these events into account, and I suspect that the FHA guidelines will be expanded to include them.

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ABOUT STEVEN CIANTRO: Steven is a certified credit counselor and management representative of American Debt Enders, as well as a former finalist in Inc Magazine and Ernst and Young’s Entrepreneur of the Year Contest. He is also a successful published songwriter and musician (his album January Tyme can be heard on YouTube), the inventor of a patented medical device, and a public speaker about debt issues.

Steven is well suited to advising on debt issues. He grew up from humble beginnings, personally made a fortune from nothing in his earlier years, and lost it. The experience completely altered his value system. It took years for Steven and his wife to untangle the financial mess, which they ultimately did on their own, gaining a tremendous education in the process. It seemed that every professional debt expert they spoke to wanted to put them into even more debt to help them. The experience left Steven with chronic kidney disease, which he still battles today. In 2004, Steven found work at a national nonprofit credit counseling company. After six months he became regional manager; Steven had found a new calling. He is in the unique position of not only having become a true expert on debt relief issues, but also understanding firsthand how oppressive debt can be. In 2006 American Debt Enders was started as a company that would offer free credit counseling, and was among the first companies in the nation to use the business model of offering multiple debt relief programs and solutions under the same roof.
If you need counseling on any type of debt-related issue, please do not hesitate to call or email me. The talking is always free. 


This article is courtesy of the Top 1% Club and the Top 1% Club Mentor Gail Kasper. For additional information on Gail Kasper, her television appearances and speaking engagements, please visit