While not commonly known to many borrowers, it is possible to obtain an unsecured personal loan, even after declaring bankruptcy. A bankruptcy will stay on your credit report for seven years in the case of Chapter 13 bankruptcy or 10 years in the case of Chapter 7 bankruptcy.

When can you get a loan after Chapter 13?

For a conventional loan, there’s a 2-year waiting period after Chapter 13 discharge. But if your bankruptcy was dismissed rather than discharged, that waiting period is extended to 4 years for a conventional loan.

How to get a loan during Chapter 13 bankruptcy?

Consult With a Bankruptcy Attorney. If you need to get a loan while in Chapter 13 bankruptcy, your best bet is to contact a local bankruptcy lawyer. The lawyer can advise you as to whether you can modify your plan to accommodate the new payment and will be familiar with the practices in your area.

Can you get a car loan in Chapter 13?

For example, if you need a reliable car to get to work so you can earn money to make payments to the Chapter 13 plan, the trustee and court are likely to approve the car loan. In most cases, you need to obtain the court’s permission before you incur substantial debts.

Is there a waiting period for a conventional loan after Chapter 13?

Conventional Loan After Chapter 13 Bankruptcy Guidelines. However, Fannie Mae and Freddie Mac Guidelines state that there is a two year mandatory waiting period after the Chapter 13 Bankruptcy discharged date A Chapter 7 Bankruptcy is also known as total liquidation and there is a four year waiting period to qualify for a conventional loan…

Do you need permission to incur debt in Chapter 13?

In most cases, you need to obtain the court’s permission before you incur substantial debts. The procedures you must follow to ask the trustee and court for permission to incur new debt vary, so check with your Chapter 13 trustee or attorney to find out the specific procedures required in your bankruptcy court.