I applied for bankruptcy in Summer of 2011.
I am wondering if it is possible to obtain a loan while you are currently in bankruptcy? My husband and I would like to do some work on our home and he will need a new vehicle very soon. The car he currently drives is in the bankruptcy proceedings, but I dont want to do anythingn that would hurt us in the long run. Please help!
Since you are still in your bankruptcy I’m assuming it is a chapter 13 bankruptcy where you make monthly payments over a period of time to protect your assets but take care of the debt.
Getting a new loan while in a chapter 13 bankruptcy is tough, if not impossible.
Before you made any application for new credit you absolutely must discuss this matter first with your bankruptcy attorney. They may tell you it would require approval of the bankruptcy trustee.
But the issue here seems to be if a chapter 13 bankruptcy is still suitable for you or you need to consider converting it to a chapter 7 bankruptcy where you debt would be discharged in about 90 days. You could then focus on rebuilding your credit so you would be in better shape to apply for credit in the future.
Again, talk to your attorney about your current situation.
Please post your responses and follow-up messages to me on this in the comments section below.