Legal Question in Real Estate Law in Oregon

Buying A Home After Chapter 13 Discharge

I filed for chapter 13 bankruptcy in 1993. I discharged the bankruptcy (paid off in full) in 1995. Since then I have had perfect credit, and since 7 years has passed the bankruptcy no longer appears on my credit report. When mortgage lenders ask me if I have ever filed for bankruptcy, am I obligated to disclose the bankruptcy if it does not appear on my credit report?


Asked on 9/23/03, 5:39 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: Buying A Home After Chapter 13 Discharge

If the question is whether you have "ever" filed for a bankruptcy, then you must answer "yes" even if you don't think it still shows on your credit report. The filing of a bankruptcy is an item of public record and the lender can still find out about it.

If you have lied on the application, the fact that you lied is basis for denial of credit. Don't assume that just because 7 years have passed that the bankruptcy won't show up on a credit report. If you are truthful about the bankruptcy, then your more recent credit history should still lead to granting of the credit.

Many loan applications ask if you have filed for a bankruptcy in the past 7 or 10 years. If that is the question, then you answer it truthfully.

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Answered on 9/24/03, 12:11 pm


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