Does Chapter 13 Bankruptcy = REI Killer? - Posted by DownOnHisLuck-IL
Posted by DownOnHisLuck-IL on September 15, 2004 at 16:22:12:
I’m just trying to figure out… I’ve been getting advice from many different angles, and from many different people and gotten really conflicting information from different sources.
I’ve had a loan officer tell me that after a Chapter 13 it will be about 2 years before you can go back to getting a normal Mortgage loan on Real Estate, and I’ve heard others say that if you start re-establishing your credit immediately after filing, that you can get a decent loan in as little as 6 months.
I’m just trying to sort out fact from fiction, and figure out if Chapter 13 is really a career killer for an RE-Investor. What experience have you folks had with Chapter 13 Bankruptcys and what advice would you give?
As far as my situation goes, I’ve got around 30K worth of debt in Credit Cards, Hospital Bills, and things of the like. I can’t get any loans as it is to buy investment property or even my own residence due to my large debt and low income, so I would think this might be the best way to go. Wipe out my debt, and give me a chance to rebuild my credit.
However, I hear some people say Chapter 13 is ‘no big deal’ and others say it will haunt you for years afterword.
For a Real Estate Investor, what can I expect from Chapter 13 Bankruptcy? What caveats might you have for me, what would make it ‘worth it’ to go ahead with the Bankruptcy?