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Alice filed for bankruptcy 5 years ago. How could this affect her in trying to purchase a new home? A) Bankruptcy could prevent Alice from obtaining new lines of credit to buy the home. B) Since Alice filed 5 years ago bankruptcy should not affect her home buying experience. C) Alice may need be able to increase her line of credit as a result of having previously filed bankruptcy. D) Filing bankruptcy in the past shows that Alice is a good investment to a potential lender, who may give her money to buy the home.

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Answer:KEY TAKEAWAYS

Bankruptcy is an unfortunate reality for many people, but it doesn’t mean you won’t be able to obtain a mortgage in the future.

While your credit score is likely to take a major hit, you can rebuild your credit over time to minimize its overall impact.

In the short term, check your credit report for any incorrect items and if possible try to get your bankruptcy discharged.

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Answer: The answer is A

Explanation:

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