It is very difficult, and sometimes impossible, to obtain credit while you are in bankruptcy. While it may be possible though quite difficult to obtain credit while you are in a chapter 13 bankruptcy, the trustee and the bankruptcy judge generally disfavor incurring any additional debt while you are in chapter 13 bankruptcy. After all, credit is what got you into bankruptcy in the first place, and the court is very concerned about incurring any additional credit debt while you are in bankruptcy. You may also face other problematic factors, such as having to pay higher interest rates, and creditors may require more down payment prior to financing your purchase. In addition, you may even be denied credit because you have filed bankruptcy.
People often have a misconception about bankruptcy and their credit report .
This is far from the truth. Your credit report will still reflect very negative matters such as delinquent payments, slow payments, all charge-off accounts, closed accounts, and even balances still owed on the account. Many times the information reported on your credit report is inaccurate or misleading. To the contrary, the bankruptcy process will harm your credit report. Moreover, your bankruptcy attorney is not being employed for the purpose of providing you with a clean credit report.