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VA Chapter 13 Bankruptcy Dismissal Guidelines
Is there a waiting period after Chapter 13 Bankruptcy dismissal on VA loans.
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3 Replies
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Chapter 13 filers are usually hoping to get a bankruptcy discharge. That is the order that wipes the slate clean of certain debts and gives the filer a fresh start. A dismissal is very different. It means the filer’s case has been stopped before the court granted a discharge. Accordingly, the filer’s creditors may once again seek to repossess the filer’s property or foreclose on any collateral that serves to satisfy the filer’s debts. The filer will owe them the same amount that was due before declaring bankruptcy, minus any payments made before the case’s dismissal. Thus, obviously, a better outcome would likely be to get a discharge vs. dismissal.
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You can qualify for a government loan after a Chapter 13 Bankruptcy dismissal if you are filing bankruptcy and requesting the dismissal voluntarily without derogatory credit tradelines since you filed without a waiting period requirement. However, Fannie Mae and Freddie Mac requires a four year waiting period after a Chapter 13 bankruptcy dismissal.
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Here’s a comprehensive blog about qualifying for a mortgage after bankruptcy discharged versus bankruptcy dismissal