Tennessee residents who file for Chapter 13 bankruptcy may know that doing so will impact their credit for a significant period of time. This type of protection from creditors is available to anyone with unsecured debts of $394,725 and secured debts of less than $1,184,200. While it may be more difficult to rent or buy a home after a bankruptcy, it is still possible to do so.
Those who are looking to rent an apartment may want to put their bankruptcy in context for prospective landlords. This may make the landlord feel better about approving a rental application, and renters may ask current landlords or others to write letters of recommendation on their behalf. Debtors who have filed for Chapter 13 bankruptcy may be able to purchase a home 12 months after filing if they use an FHA loan.
Potential buyers must show that they have performed well through their plan for at least one year. It may also be necessary to show that the potential buyer has approval from the bankruptcy court. Those who are unsure as to whether they can buy or rent after filing for bankruptcy should focus on getting whatever home that they may be approved for. After that, they can spend the next year rebuilding their reputation among landlords or lenders.
Individuals who are planning on filing for Chapter 13 bankruptcy may want to talk to an attorney or financial adviser before doing so. This filing may reduce a person’s credit score, which could make it harder to buy a house or other items. An attorney might be able to help an individual convince a court to approve an application to buy a home during the repayment period.