Can I get a consolidation loan after Chapter 13 bankruptcy dismissal?

WillI be able to get a debt consolidation loan after the judge dismisses my chapter 13 petition for bankruptcy. The creditors meeting has not been held

Hi Donald

It depends on the company who will be reviewing your file before extending any loan to you. Loans after bankruptcy come at a very rate of interest. You have to shape up your credit towards a better side. Once your file improves from the present scenario, you will again get the normal interest rates. The repair usually takes 2 years to time in achieving the improvement.

You will get many companies that will be willing to extend new loans just after bankruptcy case is closed. Don't trust them. They may be trying to scam you and steal your money by charging an upfront fee. You will have to research for a reputable lender who can extend you the loan amount at your situation and not deceive you financially.

You might wait for sometime till your credit improves. The lenders will place better deals each time your credit ratings show consistent improvement.

Beware that even though you have dismissed the filing, it will STILL be on your credit reports for 10 years. My wife did this a few years ago, and that bankruptcy still affects her today, six years later even though it was never discharged, and the creditors which were originally listed have all been paid off.

In short if you are seeking dismissal in order avoid the credit mark, it is already too late.

Why is the chapter 13 being dismissed? I assume that you do mean "dismissed" (i.e., plan uncompleted, still in debt) rather than "discharged" (i.e., plan completed, debt paid off).

And, btw, have you considered conversion to chapter 7? That may be better than dismissal, and the bankruptcy judge has the authority to order the conversion.

I have been in Chapter 13 for 2 1/2 years and would like information on what would happen if I did a voluntary dismissal. Whether house could be forclosed automatically or if caught up, that would not bo possible. Our adjustable mortgage rate is not at 12% with an increase every 6 months and I cannot refinance or anything while in Chapter 13. I want to dismiss chapter and pay regular and refinacne the house if possible. but I am unsure what ramifications are if I get Chapter 13 dismissed because I do not want to lose my house. Not concerced with automobiles or anything else other than keeping house.

If you're in chapter 13, and doing it successfully, I would suggest seeing the plan through and getting a successful discharge - that way you don't look like a failure to future creditors, you look like someone who pays his bills (even if the creditors had to go on a forced payment plan and put up with the automatic stay).

If you get out of the chap. 13, the automatic stay is eliminated and your creditors are free to take whatever action they want in order to collect.

HI VLD, it's great to see you back. I was just thinking the other day I hadn't seen you around much lately.

is it true that doing a conversion would cost you to lose your home or car?

I live in the state of Georgia and is currently in a chapter 13. The trustees keep wanting to raise the amount of my payment, because they did not take out enough money from my retirement check. I cannot afford for them to take out any more money. If I let them dismiss the chapter 13, can my unsecured credit cards garnish my check or take money out of my checking account.