Will You Have To Wait Seven Years To Get A Loan After Bankruptcy?
By Susanne Robicsek, North Carolina Bankruptcy Attorney on Oct 7, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, Life After Bankruptcy
If someone has an open Chapter 13 bankruptcy, they need court permission to borrow money, but once someone has filed for Chapter 7, or once their Chapter 13 bankruptcy case is over, they can borrow money if they want. Finding someone who will lend to them is a different matter, or at least lending money at a reasonable interest rate.
Most lenders won’t give someone a loan until the Discharge is entered, but there is no law that says they can’t. It is the lender’s policy and probably a wise decision for them, just in case something goes wrong. I recommend that my clients wait until the Chapter 7 or Chapter 13 Discharge comes through, and if possible, until the Final Decree closing the case. Chapter 13 debtors should always wait until after the Final Decree since special rules cover their ability to borrow while their case is still open. If someone can wait a while and rebuild their credit rating, their chances of better rates increases too. Speak to your attorney before you borrow if you have an open case, and don’t forget your common sense about staying out of debt.
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