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Generally, you can apply for an FHA mortgage two years after your Chapter 13 discharge. This timeline allows borrowers to demonstrate consistent payment habits following bankruptcy. Lenders will assess your financial stability and creditworthiness, so having a strong payment history will help. Be sure to consult reliable resources to manage the effects of discharged bankruptcy Chapter 13 foreclosure effectively.
Once you have paid off all of your chapter 13 bankruptcy debts, you will go to the bankruptcy court for one last hearing ? your discharge hearing. You have the option of directing your attorney to attend the hearing in your place. The bankruptcy judge will review all of your case details.
About 45 days after you've received your discharge, you will receive a document called a Final Decree. It's the document that officially closes your case. Once this document is received, you are no longer in bankruptcy.
What does my Chapter 13 discharge order look like? While every court is slightly different, the Chapter 13 discharge order looks similar. It is signed by a judge and states that ?A discharge under 11 U.S.C. § 1328(a) is granted to: Your Name?.
Unlike other debts, your mortgage payments will not be discharged after you complete your payment plan. In other words, you'll have to keep paying your mortgage in order to keep your home after you've completed your chapter 13 obligations.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.