When applying for a home equity loan or HELOC, you won’t be able to do so right away.
In some cases, you might be able to qualify for one of these loans three years after your bankruptcy is discharged, but, in general, it’s more common to wait for five to six years to receive loan approval.26 Mar 2019
Can a home equity line of credit be discharged in Chapter 7?
Home Equity Loans and Bankruptcy
The short answer is no. A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home. But remember, in Chapter 13 bankruptcy, you will repay on all of your creditors, including credit cards.5 Mar 2019
How long after a foreclosure can I get a home equity loan?
In general, you’ll need to wait seven years after a foreclosure or short sale to get a conventional mortgage, three years to get a Federal Housing Administration or U.S. Department of Agriculture loan and two years to get a loan backed by the U.S. Department of Veterans Affairs.26 May 2016
Can I get a Heloc while in Chapter 13?
Stripping Off HELOCs in Chapter 13
The HELOC loan amount is treated like other unsecured debts (e.g. credit cards) in your Chapter 13 Plan. At the end of the plan, you receive a discharge of liability for any unpaid balance due the unsecured creditors, including the HELOC.
Can you refinance your home after Chapter 7?
If you’ve had more than one bankruptcy — Chapter 7 or Chapter 13 — over the last seven years, there’s a five-year waiting period to refinance your mortgage or qualify for any type of home loan. Once you get through your respective waiting period, the qualifications for a home loan are the same as anyone else.4 Jun 2018