Listed below are common questions that you may be asking during the Chapter 13 Bankruptcy filing process. Our team of experts have provided many answers to the most commonly encountered questions from our clients. However, if you do not see your question answered please fill our our contact form and one of our team members will connect with you directly.
Questions About Chapter 13 Bankruptcy Brad
The biggest difference is how your debt is repaid. Chapter 13 bankruptcy allows you to enter into a re-payment plan where you make monthly structured payments to remove your debt. While a Chapter 7 Bankruptcy plan makes you liquidate all of your assets in order to pay off your existing debt.
Some lenders offer mortgages to Chapter 13 Bankruptcy clients as soon as one day after their discharge. While some lenders make you wait up to two years. Some clients can qualify to get a mortgage during their Chapter 13 Bankruptcy plan, as soon as one year into their plan.
Some loan programs that are available to you after a Chapter 13 bankruptcy are conventional mortgages, VA home loans, FHA home loans, USDA home loans, portfolio loans and more.
Some lenders are able to secure borrowers with an FHA home loan as soon as one day after being discharged from Chapter 13 Bankruptcy.
Getting a Mortgage or refinancing after Chapter 13 Bankruptcy can take as little as 30 days to as long as 3 months. The most common issues that slow the process down deal with credit, title, property condition and how quickly we receive requested documentation from you.
Yes, you can! Purchasing a home during a Chapter 13 Bankruptcy Plan does have extra steps involved though. Your trustee must approve your purchase and you must make all of your first year’s payments on time into your plan before purchasing a home.
Yes, you can! Refinancing a home during Chapter 13 Bankruptcy does have extra steps involved though. Your trustee must approve your refinance and you must make your first year’s payments into your plan before refinancing your home. Many borrowers find that waiting until after the 3rd year of on time payments is best for refinances.
Many clients choose to obtain a cash-out refinance after their Chapter 13 Bankruptcy. Often these borrowers have not been able to tap into equity in their home during bankruptcy to make home improvements or consolidate high interest rate debts. Each mortgage program has different limits set on the amount you can take out relative to the value of your home.
Yes there are loan programs that offer low/no cost down payments. For example, FHA loans after bankruptcy have low down-payment options and both VA loan programs and USDA loan programs have zero down-payment options after bankruptcy.
Student loans will fall under the category of a “non-dis-chargeable debt” 99% of the time. You will most likely have to pay back your student loan debt in full. Even after you complete your bankruptcy plan. Read more about how student loans can affect your ability to get a home loan after bankruptcy.
If you are looking to file for bankruptcy it is best that you contact one of our trusted bankruptcy attorneys first.
Divorce has the ability to complicate nearly any and all matters within your finances, and bankruptcies are no different. If you’ve already filed for Chapter 13 bankruptcy and then proceed to divorce your spouse,you will be faced with several challenges that you will have to work through