Bankruptcy

[bill31]

Hello, I need some advise, a while ago I got together with another individual and bought a house together, He started abusing me verbally physically and was missing work because  of that and decided to pack up and leave overnight, The other individual stayed paying on the mortgage for a year then after that he quit paying at that time I only had 3000.00 spread across 4 cards.

After consulting with many attorneys one of them said to file bankruptcy chapter 13 so I did that and included the  house in bankruptcy I checked my score in quizzle and it now 599 My question is, when I get a discharge will my FiCO score Increase?  The house is in the process of being foreclosed.

How long do I need to wait before I can obtain home financing again?

While I am paying the bankruptcy I Managed to obtain the below and are reporting current.

1. A secured loan backed by a CD for  $1500.00

2. A secured card with capital one for $410.00 

3. One of my Express fashion credit card its surviving open with $700.00 limit

4. Recently got approved for an Unsecured card for capital one $300.00 limit

What else can I do to improve my credit I feel really depressed because the housing market it's really great to buy and I have the right Income  But my credit is messed up .

Please advise thank you.

[sports1965]

u have to wait 2 years from discharge or 3 years from foreclosure.

just the credit cards u now have ,don't apply for more,pay them in full at end of the month and in 6 months to 1 year u will be in a much better position

good luck

[sports1965]

oh and if u are in a BK13  u should not be obtaining new credit .its against the BK laws.u can get in a lot of trouble

[ProudMomof5]

I do know that if you file a Chapter 13 you only have to wait a year with on-time payments to your trustee.  Now since your house is about to be foreclosed on I'm not sure if you have to wait additional time.  I was reading a post earlier and they were talking about this.  I'm not sure if it was in the mortgage forum or not but if I come across it again I'll post the link.  

I file a Chapter 13 last August and I'm patiently waiting for this year to hit so that I can try to apply.  Hopefully my trustee will give me the okay to purchase. 

[SoulMaster]

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sports1965 wrote:

oh and if u are in a BK13  u should not be obtaining new credit .its against the BK laws.u can get in a lot of trouble

---

The second part of this statement is not true at all.  Sorry, sports1965. I agree, however, that if you're in a 13 you shouldn't be applying for new credit.  But it's not against any BK law currently on the books.

Certain purchases, though, require the approval of your trustee.  Here's an example of a car:

http://www.bankrate.com/brm/news/bankruptcy/20051122a1.asp

Here's a summary of the rules about buying a house while in a 13.  Basically, 18 months in and trustee approval pretty much means your ok to do it.  You can even get an FHA loan.  See Question 5:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqgnsrv

Cheers,

-SM

[sports1965]

I was told u need trustee approval to apply for ANY type of credit.

But I can be wrong

[jetsfan2012]

It may be state specific, maybe not, but while in an active 13, its advisable you talk to your attorney before entering in any new debt, especially if you arent in a 100 percent repayment plan.