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FHA Loan After Chapter 13 Bankruptcy Dismissal
I was referred to you by Julio and Hector Munoz and Dimitri Slovek. I am reaching out in hopes that your team can assist my wife and me with obtaining a mortgage despite a unique credit reporting situation.
My wife and I filed a Chapter 13 bankruptcy on March 18, 2024. However, after carefully evaluating our financial situation, we made the decision to voluntarily dismiss the bankruptcy because we believed it was the best path forward. The bankruptcy case was officially dismissed and closed in April 2025, a little over a year ago. Rather than remain in a repayment plan for years, we chose to rebuild our finances independently, honor our financial obligations, and improve our credit.
Since that time, we have worked diligently to restore our credit and strengthen our financial profile. Today, our situation is as follows:
My Credit Profile
- The Chapter 13 bankruptcy is reporting only on my Experian credit report.
- I have one charge-off reporting only to TransUnion.
- I have no other negative accounts.
- All remaining accounts are current, paid as agreed, and in good standing.
- My credit scores are currently in the mid-600s.
My Wife’s Credit Profile
- The bankruptcy is reporting only on her TransUnion credit report.
- It has already been removed from her Experian and Equifax credit reports.
- She has no other negative accounts.
- Her credit scores are in the low 700s.
Our current lender has advised us to wait until the remaining bankruptcy tradelines are removed from the final credit bureaus before proceeding with our mortgage application. Unfortunately, despite numerous disputes and providing documentation from the bankruptcy court, PACER, and LexisNexis supporting our position, the remaining reporting has not yet been corrected. We simply do not know how much longer the credit reporting agencies will take to resolve these issues.
Aside from these isolated reporting issues, we believe we are strong mortgage candidates. We both have stable employment, strong and consistent income, several years of employment history with our respective employers, and an excellent recent payment history. Since the dismissal of our bankruptcy, we have been intentional about rebuilding our credit and maintaining responsible financial habits.
In addition to my professional career, I serve as the senior pastor of a rapidly growing church. As our ministry continues to expand, it has become increasingly important for my family and me to relocate closer to our church and congregation. Living nearer to the people we serve will allow me to better fulfill my pastoral responsibilities and be more present for the community.
We are not asking for special consideration; we are simply asking that our overall financial picture be evaluated rather than having our application delayed solely because of a bankruptcy that remains on one credit bureau due to an unresolved reporting issue. We are prepared to provide documentation regarding the bankruptcy dismissal, our income, employment, tax returns, bank statements, and any other information necessary to support our mortgage application.
If your team has experience helping borrowers in situations like ours, we would greatly appreciate the opportunity to discuss our options. We would be grateful for your honest assessment of whether you believe you can help us obtain financing despite these remaining credit reporting issues.
Thank you for your time and consideration. We sincerely appreciate the opportunity to present our situation and hope to have the privilege of working with your team.
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2 Replies
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This summary explains how removing a bankruptcy from your credit report differs from qualifying for a mortgage. Fannie Mae and Freddie Mac typically require a four-year wait after a Chapter 13 dismissal for standard loans, but Fannie Mae may allow just two years in certain situations. The Federal Housing Administration (FHA) tends to be more flexible with Chapter 13 cases, though your payment history, case details, paperwork, and lender requirements are still important. A Chapter 13 bankruptcy can remain on your credit report for up to seven years.
Thank you for sharing your experience. You and your wife have made real progress since your Chapter 13 dismissal. Lenders value steady jobs, better credit, and a history of on-time payments. Your recent payment history, stable employment, and growing savings all strengthen your application.
It’s important to know how Chapter 13 bankruptcy appears on credit reports. A dismissed bankruptcy does not automatically disappear from all reports. What matters most is that credit bureaus list the correct filing and dismissal dates, chapter, and status. If there are errors, such as showing the bankruptcy as ‘active’ instead of ‘discharged’ or omitting a paid balance, they should be fixed. If the report is accurate, the bankruptcy will stay for the allowed time. Don’t rely on just one credit bureau to remove the bankruptcy, since mortgage lenders use Tri-Merge credit reports that show your full credit history, loan application, and court documents. Even if one or two bureaus don’t show the bankruptcy, you still need to disclose it and provide court dismissal papers. For national loans, the date your Chapter 13 was dismissed is more important than whether it appears on your credit reports. Conventional loans usually require a longer wait after dismissal than after discharge. Because your case was dismissed in April 2025, you currently need special approval to qualify for a conventional loan.
Even with these challenges, you still have good mortgage options. FHA rules are often more flexible for people with a Chapter 13 history, especially if you have made at least 12 months of on-time payments and can show your financial issues are behind you. Since your case was dismissed and not discharged, take time to review program rules, lender policies, your payment history, and the reason for the dismissal to get the best advice. Credit scores in the low 700s or mid-600s are a good start, but they are only part of the picture. Pay close attention to the charge-off on TransUnion, including the balance, last activity date, payment status, and how it affects your debt-to-income ratio. Also, consider your income, proof of employment, debts you still owe, available down payment, savings, and your target home price. Instead of waiting for credit bureaus to remove the bankruptcy, focus on reviewing your dismissal order, bankruptcy payment history, tri-merge credit reports, charge-off details, and income and asset documents. This will help you decide whether the FHA option is right, whether a non-agency loan is possible, or whether you should work on your credit before applying for a conventional loan.
Contact our team directly with a private message on the GCA Mortgage Forums. If you share your state, estimated income, target home price, and charge-off status, we can provide a clear, realistic assessment tailored to your situation. This will help you move forward confidently, rather than waiting for your credit report to change.
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Bankruptcy Dismissal and Bankruptcy Discharge: How They Differ
Bankruptcy dismissal and discharge result in very different outcomes in U.S. bankruptcy cases. Most people want a discharge because it cancels debt and provides relief. On the other hand, a dismissal just ends the case and leaves debts unpaid.
A discharge frees you from certain debts, giving you a chance to start fresh financially. After a discharge, creditors cannot collect those debts. But if the case is dismissed, debts stay, and creditors can quickly start collecting again, sue you, take money from your paycheck, or even take your property. The automatic protection from creditors ends immediately with a dismissal, but a discharge stops collection permanently. Both results appear on your credit report for seven to ten years. It is usually easier to rebuild credit after a discharge because debts are wiped out, while a dismissal leaves unpaid debts that hurt your credit more. After a discharge, you usually have to wait before filing again, but after a dismissal, you might be able to file again right away.
Bankruptcy Discharge: Summary and Directions
A bankruptcy discharge cancels most debts, like credit cards, bank loans, and medical bills, freeing you from having to pay them back. But some debts, such as taxes, child support, certain student loans, and debts arising from bankruptcy fraud, remain. When you get the discharge depends on the type of bankruptcy: in Chapter 7, it usually happens about 4 months after filing, while in Chapter 13, you get it after finishing a 3- to 5-year payment plan.
To get a bankruptcy discharge, you must meet certain requirements. You have to attend the 341 meeting of creditors, and in Chapter 13, make all required payments. Hiding property or intentionally incurring new debts can jeopardize your discharge. Working with a bankruptcy lawyer and staying organized can improve your chances. After the discharge, you can begin rebuilding your credit. The court sends a discharge notice to you and your creditors.
Bankruptcy Dismissal: Summary and Directions
A bankruptcy dismissal can occur if you request it or if the court orders it. Sometimes the court, trustee, or a creditor asks for dismissal. Common reasons include failing to complete required credit counseling, failing to make Chapter 13 payments, or acting dishonestly. If the bankruptcy case is dismissed, your debts come back into play, and the automatic stay disappears. Creditors can jump right back into collecting. The bankruptcy will still show up on your credit report. If you are facing dismissal, act quickly by sending in missing paperwork or catching up on payments. Talk to an attorney before trying to file again. You might also consider negotiating with creditors, working with a budgeting advisor, or getting credit counseling. Make sure to cover your basic expenses, build an emergency fund, and handle your remaining debts wisely.
It is important to note that a case may be administratively closed upon completion or discharge, a distinction from dismissal. Rules vary by bankruptcy chapter and local court procedures, leading to different outcomes. This guide is for informational purposes only and does not constitute legal advice. For specific questions, consult a qualified bankruptcy attorney. Additional information is available at uscourts.gov.
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