Whether you’re a veteran considering filing for Chapter 7 or Chapter 13 bankruptcy or you’ve already filed, you know bankruptcy negatively impacts your credit, sometimes to a substantial degree. And while getting a loan after bankruptcy can often be a challenge under normal circumstances, as a veteran, you can still qualify for a VA loan, often in a shorter waiting period than required for other types of loans.


Here’s what you should know about getting VA loans after filing for bankruptcy. 


Getting a VA Loan After Chapter 7 Bankruptcy

Although waiting periods for VA loan qualification can vary based on a number of factors, the most important is the type of bankruptcy you filed for. If you filed a Chapter 7 case, lenders typically require you to wait a minimum of two years to apply for a VA loan.


If you’ve filed for bankruptcy in the past, and it’s been at least two years since your case was discharged, the Department of Veterans Affairs allows lenders to disregard your bankruptcy when you apply for a VA loan. However, you must still meet any income, credit, and other financial requirements to be eligible for the loan.


For more information on waiting periods for various types of loans after a Chapter 7 case, see Can You Buy a House After Filing for Chapter 7 Bankruptcy?


Qualifying for a VA Loan After Chapter 13 Bankruptcy

When you file a Chapter 13 case, you’ll be issued a repayment plan that will involve making monthly payments toward your debt according to your budget. Once your payment plan reaches its term and you’ve made all necessary payments, the remainder of your dischargeable debt (if any) will be wiped out. At that point, you’ll also be eligible for a VA loan, provided you meet the income and other financial standards to qualify.


But as a veteran, you may not need to wait until your payment plan reaches its term to apply for a VA loan. If you’ve made at least 12 months of payments toward your plan, you may be able to qualify for a VA loan in as little as a year after your bankruptcy discharge. But to apply for a loan at that point, you must get approval from either your bankruptcy trustee or the judge overseeing your case.


Improving Your Odds of VA Loan Eligibility

Although you can qualify for a VA loan in a shorter waiting period than that required for conventional loans, your eligibility for VA loans still depends on your creditworthiness, income, and other financial conditions.


If you’re still waiting to be eligible for a VA loan after bankruptcy, it’s in your best interest to work toward establishing a strong payment history. Doing this will help boost your credit score and profile while you wait. Pay your bills on time and in full, and be sure to monitor your credit report for any errors that may negatively affect your score.


If you notice anything suspicious, work to correct it as promptly as possible to keep your score on the rise and improve your odds of qualifying for any VA loans you may need.


For more tips on fixing your credit after bankruptcy, check out Credit Repair: How to Bounce Back After Filing for Bankruptcy.


Get a Free Consultation With a Twin Cities Bankruptcy Attorney for Veterans

If you’re a veteran who’s struggling with overwhelming personal or business debt, don’t hesitate to reach out to Ron Lundquist, Attorney at Law for help. Our office specializes in Chapter 7 and Chapter 13 bankruptcy, as well as business bankruptcy cases, and we’ve proudly served the Minneapolis/St. Paul metro for more than 20 years.


To learn more about how we can help you get the debt relief you need, feel free to call our office today at 651-454-0007 or request a free consultation online, and we’ll be in touch promptly.