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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Most lenders under the FHA guidelines allow chapter 13 filers

Customer Question

Most lenders under the FHA guidelines allow chapter 13 filers to qualify for a mortgage if they have been making payments in their plan for 1 whole year.

I am in a chapter 11 payment plan. Is Chapter 11 treated the same way as Chapter 13?

Also How long does Chapter 11 stay on the credit report? If it is like Chapter 13, should it not be 7 years instead of 10?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 4 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

You filed a personal chapter 11?

WALLSTREETESQ :

A Chapter 7-11-12 will remain for ten years. A chapter 13 will remain for seven years from date filed if successfully completed, for 10 years from date filed if dismissed.

WALLSTREETESQ :

A chapter 13 is treated better then a chapter 11 filing, as a chapter 13 is a personal payment plan to creditors, a chapter 11 is rare for personal individuals, but if the plan has been paid for over a year, it should not disqualify you from obtaining credit.

Customer :

I am in a chpater 11 payment plan and have paid for over 2 years on a four year payment plan. I wanted to know if I have to wait for a discharge and then 2 years after that for a lender to look at me, or whether the lender would look at me like they do for a chapter 13.

WALLSTREETESQ :

Court approval is required prior to obtaining or incurring any other type of credit or debt during the case. Thus, secured credit or unsecured credit not in the ordinary course of business may be obtained during the case only with the prior approval of the bankruptcy court.

WALLSTREETESQ :

The lender would still allow you to obtain credit as it does happen, the major issue you will have is that approval is needed to incur a mortgage from the Court, and that could reject your mortgage.

WALLSTREETESQ :

You do not have to wait till discharge.

Customer :

so for any chapter like 11 or 13 or any other with a payment plan, during the plan, one should get approval first?

WALLSTREETESQ :

Yes, whenever you incur new debt, it must be approved.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

If satisfied please provide us with any positive feedback.

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask.

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