Can a bankruptcy record be expunged before 10 years? 13 Answers as of May 21, 2013

My wife and I were just granted a chapter 13 discharge on 7-3-2012. the only reason it was discharged was because my mother passed away in August of 2011 and my inheritance was used to pay off all lenders IN FULL. Now the record of the Bankruptcy is preventing us from getting back on our feet and purchasing a home. We were told we can not qualify for a mortgage until 1 year after our discharge. I fear if we have to wait this long we'll miss out on the great opportunities available to buyers right now. It hardly seems fair that we have to have this on our record if we ended up having to pay all lenders in full. Chapter 13 bankruptcy protection is what it was called, but where is the protection really? I read online that some bankruptcies can be declared Null and Void, is this true and could it speed up our home buying process so we don't have to wait a year to qualify? Is there not one thing we can do to qualify for a home loan now? We make too much money to qualify for any government subsidized plans . Hard to believe the justice system could be so unjust. We are not asking for financial handouts, we can pay our own way, we just want to be allowed to.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
CH13 was good to you. It allowed you to keep the creditors at bay. The fact that you received an inheritance does not mitigate the benefit you got. You paid them off without interest. The rule about waiting one year is the lenders rule. There is no "law" about that.
Answer Applies to: California
Replied: 10/18/2012
William Bidwell, Attorney at Law | Bill Bidwell
It appears that you inherited money after confirmation and during the Chapter 13 plan, and the inheritance satisfied the debts. Do not worry about housing prices recovering substantially in 1 year and losing "opportunities." Housing prices will take years to recover to prices before the crash. I suggest contacting an attorney and providing all the facts concerning your situation; there is no charge for an initial consultation. Lenders typically requires a 1 - 2 year wait period. You are entitled by law to insert a 100 word statement in your credit report, but this will not satisfy the lending criteria. Your main goal is to re-build your credit.
Answer Applies to: Michigan
Replied: 10/18/2012
Law Office of Norman Moore
Law Office of Norman Moore | Norman P Moore Jr
My advice on buying a home is to keep looking. You have already found a lender who will make a mortgage loan to you after only 1 year, so keep looking. I don't think you have to worry about missing the great deals available right now, I think they will be around for awhile. I am sorry to hear about your mother's passing, but paying off your debts in a 13 (known as a 100% plan) is not so uncommon that, in and of itself, it would justify acting as if you had never had to seek bankruptcy protection. Feel free to contact another attorney on this one for a second opinion. I don't see how you can say the Justice system was "unjust" to you when it worked exactly the way it was supposed to in your case.
Answer Applies to: Wisconsin
Replied: 10/18/2012
William C. Gosnell, Attorney at Law
William C. Gosnell, Attorney at Law | William C. Gosnell
Answer Applies to: Tennessee
Replied: 5/21/2013
Bodow Law Firm PLLC | Ted Araujo
You cannot remove the Bankruptcy from the credit report but you may want to seek other lenders. There is no law that states you can't get a mortgage, and in fact I have clients who buy and sell houses while they are in a 13. Raising the down payment may also make it easier to get the loan.
Answer Applies to: New York
Replied: 10/16/2012
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Get a letter from trustee to give to your lender showing 100% plan.
    Answer Applies to: New Jersey
    Replied: 10/16/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Well you were protected from creditors from the time you filed until the time you paid your debt in full. And no, you can not expunge your record and will have to wait at least 12 to 24 months to get another loan, depending on the bank. You will have to sit tight and hope the opportunity for a low interest rate is still available at a later point in time.
    Answer Applies to: New York
    Replied: 10/16/2012
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Federal law says that the credit bureaus may report your bankruptcy for 10 years. I find it hard to swallow that you think that this law is unfair when it was your choice to file the bankruptcy and if you were in a Chapter 13, you received this benefit each & every day for at least 3 years. There are plenty of other things you can do to improve your credit besides removing your bankruptcy from the report. Most lenders only consider your FICO score when granting you credit, and as time passes, your bankruptcy discharge will become less & less important. If one lender won't accept you because of your bankruptcy, you should try another. Chances are pretty good that the bankrutpcy discharge is an excuse for denying you and that it is your history of bad credit decisions over many years that is preventing you from obtaining a mortgage loan.
    Answer Applies to: Nevada
    Replied: 10/16/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    You can hire a credit repair company. If you paid all debts in full, maybe one of these companies can help change how items are listed so you can purchase a property.
    Answer Applies to: California
    Replied: 10/16/2012
    Steven Harrell, Attorney at Law | Waymon Steven Harrell
    What you read online was nothing more than hogwash. Your bankruptcy filing records are permanently maintained by the clerk of the bankruptcy court where your petition was filed.
    Answer Applies to: Georgia
    Replied: 10/16/2012
    R. Jason de Groot, P.A
    R. Jason de Groot, P.A | R. Jason de Groot
    The bankruptcy cannot be expunged, that is for criminal cases, the bankruptcy is a public record and will be there forever, in my opinion. Apply to different banks, and eventually you will find one that will lend, or seek only owner financing.
    Answer Applies to: Florida
    Replied: 10/16/2012
    *- unfortunately, there is NOTHING you can do to speed up this process. You DID get the protection of the automatic stay during the pendency of the bankruptcy and the benefit of the process. This bankruptcy filing CAN AND WILL stay on your credit report for a specified length of time. This is an underwriting rule of many lenders; several years ago, it was 2 years from the date of discharge so the economy appears to have at least shortened this time period. You can shop non-conforming lenders or seek an individual who'd be willing to hold the mortgage, but short of that, you have NO OTHER OPTION than to wait it out. *
    Answer Applies to: South Carolina
    Replied: 10/16/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    No, unfortunately you did file bankruptcy even if you did pay your creditors in full. I have had many clients that end up paying their creditors in full, once the interest and penalties stop, they can afford to pay them off. It is on your credit report. You can put a 300 word explanation on credit report, just call one of them for the form or go on-line and get it. If a traditional mortgage company won't finance you sooner, have you tried a credit union? If you have an existing relationship with one, they may be more willing to work with you. Otherwise, you will probably have to wait the year. Many mortgage companies are now going to 2-3 years before they will finance a mortgage, so maintain that relationship with whoever is saying a year!
    Answer Applies to: Michigan
    Replied: 10/16/2012
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