Legal Question in Bankruptcy in Missouri

after filing bankruptcy, when would a person be eligible to obtain a loan?

Asked on 8/26/13, 4:14 pm

1 Answer from Attorneys

Alicia Beeler Villines Alicia Beeler Villines (sole practitioner)
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In a typical chapter 7, debtors often find that their mailbox is stuffed with You Have Been Pre-Approved letters a few days after they file. That is because a Chapter 7 can only be filed once every 8 years, and any debts incurred after the filing are part of the next 8 year period. Cautious lenders will wait until a discharge is obtained (a discharge is the goal of your chapter 7) before extending offers of credit. Very cautious lenders will want to see a post-discharge successful credit history before lending. Whether or not, or when to, extend credit is a business decision for the lender. There is no law setting forth a minimum time to wait before being eligible.

In a Chapter 13, court approval must be obtained before incurring additional indebtedness during the time the case is open. A person facing Chapter 13 should consider and discuss with their attorney the desirability of purchasing a vehicle before their case is filed if the one they are currently driving is unlikely to last through the duration of their case. Secured debts are treated differently than unsecured debts, so while it's not OK to run up the credit cards and then file, it's OK to purchase a reasonable vehicle (not a luxury model) that you are going to pay for in full if you have a legitimate reason to do so.

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8/27/13, 10:31 am

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