12 CCR s 309.4

Cal. Admin. Code tit. 12, s 309.4

CALIFORNIA CODE OF REGULATIONS
TITLE 12. MILITARY AND VETERANS AFFAIRS
DIVISION 2. DEPARTMENT OF VETERANS' AFFAIRS
CHAPTER 2. VETERANS' FARM AND HOME PURCHASES
SUBCHAPTER 1. ELIGIBILITY AND QUALIFICATIONS
This database is current through 12/22/06, Register 2006, No. 51.
s 309.4. Consideration of Bankruptcies.

(a) An applicant who has previously been adjudged bankrupt and whose debts
have been discharged in bankruptcy under Chapters 7 or 13 of the
Bankruptcy Act (Title 11, U.S.C.A. , Sections 701 - 766 or Sections 1301 -
1330) shall not be refused a loan for this reason. If the applicant has
sufficient income and assets and has re-established credit, the Department
shall grant the applicant a loan. "Sufficient income and assets" is
defined as income and assets such that the balance available for family
support is equal to or greater than forty percent (40%) of adjusted gross
income as defined in Section 309.1 above.

(b) An applicant, who has been adjudged bankrupt under Chapter 7 of the
Bankruptcy Act, shall be considered as having re-established satisfactory
credit when the applicant's latest credit report shows at least one
creditor that is being paid as agreed over a period of at least six
months. If there is more than one creditor showing on the credit report,
then all creditors shall show paid as agreed over a period of at least six
months.

(c) An applicant, who has been adjudged bankrupt under Chapter 13 of the
Bankruptcy Act, shall be considered as having re-established satisfactory
credit when the applicant has satisfactorily completed all payments under
the Chapter 13 plan. However, when the applicant has not yet completed the
plan, then the Department shall inquire of the Trustee as to whether the
payments to the Trustee have been made in the manner prescribed by the
Bankruptcy Court in order to establish the applicant's creditworthiness.
In the case of a Chapter 13 filing, written approval from the Trustee
shall be received by the Department before a loan may be granted, which is
in accord with Title 11, U.S.C.A., Section 364(a) and (b).

Note: Authority cited: Section 700, Military and Veterans Code.
Reference: Section 987.56, Military and Veterans Code.

HISTORY

1. New section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).

12 CCR s 309.4, 12 CA ADC s 309.4
1CAC

12 CA ADC s 309.4

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