Chapter 13 and new credit

[debtfree09]

Can someone tell me how creditors look at a Chapter 13?  I know it does not come off my credit report for 7 years but do creditors go by the date of filing (ours was 08/2004) or by date of discharge (11/08) when granting credit.  We never missed a trustee payment.  I read posts on different credit groups that say both ways.  Anyone know which way is correct?

[debtfree09]

No one?

[Anonymous]

The longer the time after your discharge the better the chance you have that someone will give you credit. We got two Capital One credit cards issue six months after our discharge. Was able to get a auto loan after eight months. In buying a house, FHA requires that it be two years after the filing. Min credit score needed is 620. Since your discharge was in 08, I would give it a few more months ( say June) and then try getting a capital one card. They will start you out with a low credit limit, but if you keep you balance below 35% and make your payments (paying it off each month is better), they will increase your limit after 3 months. This is a good start to rebuilding your score. DW and I just moved into our new home and it has been 1 yr since our Chapter 13 discharge. Good luck on getting restarted after discharge.

[debtfree09]

See I really do not think this is right.  I think for credit its the longer you are away from filing, not discharge (at least for Chapter 13) as we got 2 credit cards while in bankruptcy (2 years after filing), with rewards and no AF, which we took so we could start rebuilding our credit, it is 2 years for a conventional loan but no amount of time for FHA as we are already working with a lender to refinance our mortgage into an FHA and our credit scores are above 620.  Are we the exception to the rule?

Sorry I see I misunderstood about FHA, I see you said 2 years from filing.

Message Edited by debtfree09 on 04-05-2009 12:31 PM

[Anonymous]

According to statements made on my credit reports, the Chapter 13 bankruptcy will disappear 7 years after date of filing -- if you successfully complete it! (only about 1 in 3 do, you know?)

But, there is hope -- I closed on a new-home mortgage, and received a nominal, low-limit (albeit, Orchard Bank), no-deposit credit card, both within 60 days of successful discharge. But, my 'outside of bankruptcy' (closed) accounts were stellar up to the time of Chapter 13 filing, and thus still report so.

The '2-year rule' applies only to Chapter 7 filings. You can apply for an FHA-guaranteed loan as early as a year after successful payments to your Chapter 13 plan, with formal court permission by your trustee. After discharge, you are good to go as long as a lender will let you.

Message Edited by oldhack62 on 04-12-2009 08:25 PM

Message Edited by oldhack62 on 04-12-2009 08:26 PM