Getting a home loan

[juice13610]

I filed in October 2007. Apparently the new law says that I can't be discharged no matter what until October 2010. This defies logic to me because those who file chapter 7 don't pay a dime toward their debt, but are discharged after only one year. My cousin was in this situation. She filed 2 years ago, and after 1 year was able to buy a new car and a house.

So, my wife and I are ready to buy again but have not been discharged and won't be discharged for 2 more years. Should I just forget getting a loan before October 2010? Should I see about converting to a chapter 7?

[hopeforus]

i am sooo not an expert, I'm rather new to all this actually but how could you get a home loan if you would be able to convert to a chapter 7?

[lrprn]

Welcome to BK Forum, Juice. We need more detailed information before we can help answer your questions.

When did you file Ch 13? Was your plan confirmed for 36 months? Is your annual income below the median income for your state? (See http://www.usdoj.gov/ust/eo/bapcpa/2...come_table.htm for the median income by state for those who filed after Oct 1, 2008.) Did you file Ch 13 trying to keep assets that you couldn't keep if you filed Ch 7?

[juice13610]

I filed in October of 2007. It was a 3 year plan, and I am the only earner in my family; I have a wife and son. I make $49k. On the site you pointed me to, in the family size = 3, I make less in the state I live in now and the state I filed in; so I guess the answer would be yes.

[juice13610]

i am sooo not an expert, I'm rather new to all this actually but how could you get a home loan if you would be able to convert to a chapter 7?

Apparently you are immediately discharged when you file chapter 7, whereas you have to wait 3 years to be discharged in a chapter 13. And it seems that creditors want you to be discharged before they will hand you a single dime. Kind of funny how it works.

[lrprn]

I filed in October of 2007. It was a 3 year plan, and I am the only earner in my family; I have a wife and son. I make $49k. On the site you pointed me to, in the family size = 3, I make less in the state I live in now and the state I filed in; so I guess the answer would be yes.

Since your income is below your state's median income, then sounds like if you want, you can qualify for Ch 7.

What asset did you file Ch 13 hoping to keep?

And is paying your Ch 13 trustee every month for three years what you are willing to do to keep the asset or assets you would lose if you file Ch 7?

Last question - have you spoken with your lawyer about the possibility of switching over to Ch 7 and what the consequences would be?

[juice13610]

Since your income is below your state's median income, then sounds like if you want, you can qualify for Ch 7.

What asset did you file Ch 13 hoping to keep?

And is paying your Ch 13 trustee every month for three years what you are willing to do to keep the asset or assets you would lose if you file Ch 7?

Last question - have you spoken with your lawyer about the possibility of switching over to Ch 7 and what the consequences would be?

I e-mailed my lawyer but haven't gotten a response yet.
The house is what we were hoping to keep as we had a renter in it, but that didn't work out, so we put it in the bankruptcy (so it's gone). Our payment is now only $64 a month and I don't believe we risk losing anything at this point.

Is there any possibility of getting a loan with a chapter 13 and not being discharged, or do you think 7 is my only way?

[WorkingItOut]

I am 99% sure you cannot get a home loan until 2 years after a Ch.7 has been discharged. And that's just an FHA loan. I think it's 3 years for a regular home loan.