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Trustee Approval During Chapter 13 Bankruptcy
How do you get a bankruptcy trustee approval to get approved for a mortgage during the Chapter 13 Bankruptcy. What is involved in getting a court trustee’s written approval letter for Chapter 13?
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Homebuyers and homeowners can be eligible for a purchase loan or refinance mortgage loans during an active Chapter 13 Bankruptcy repayment plan after one year of filing Chapter 13 Bankruptcy. Borrowers can qualify FHA and VA loans after they have made 12 timely payments on their Chapter 13 Bankruptcy but with Trustee Approval. To get a bankruptcy trustee’s approval for a mortgage during a Chapter 13 Bankruptcy, follow these steps:
- Consult with Your Attorney: Discuss your mortgage plan with your bankruptcy attorney.
- Prepare a Motion: Your attorney will draft a motion to request court approval for incurring new debt.
- Provide Justification: Explain why the mortgage is necessary and how you’ll afford it.
- Submit to Trustee: The motion is submitted to the bankruptcy trustee for review.
- Court Approval: If the trustee agrees, the court will issue a written approval.
This process ensures the mortgage aligns with your repayment plan. Homeowners with equity in their homes can do a cash-out refinance during Chapter 13 Bankruptcy repayment and buy out their Chapter 13 Bankruptcy early. Again, you need Trustee Approval.