Kenosha, WI asked in Bankruptcy for Wisconsin

Q: My father was approved for a mortgage but must pay a credit card filled under bankruptcy as closing costs. Is this legal

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2 Lawyer Answers

Clark Dray

  • Bankruptcy Lawyer
  • Broomfield, CO

A: I suspect that they want the credit card paid because it's showing an outstanding balance. Your father may want to consider figuring out which credit report is still showing the outstanding balance and file a dispute so the card shows as discharged in bankruptcy. Once the balance is resolved, the underwriter may be willing to proceed.

Alternatively, your father may provide the underwriter with a copy of his bankruptcy petition and discharge order so they can see that the debt's been resolved.

If this doesn't solve the problem, he needs to decide whether it's worth paying the debt to satisfy them, or find a different lender.

Bruce Alexander Minnick agrees with this answer

Timothy Denison

  • Bankruptcy Lawyer
  • Louisville, KY

A: Yes. Most likely. He’s not being forced to pay it. It simply must be paid as a condition of his loan approval.

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