10/22/2026 - Closed End Second - State Expansion and Credit Event Update: Bankruptcy 7, 11, & 13

Tennessee is now an eligible state for Closed End Second transactions. 

Bankruptcy (Chapter 7 or Chapter 11): 

A four-year waiting period is required, measured from the discharge or dismissal date of the bankruptcy action to application date. 

Bankruptcy (Chapter 13) 

A distinction is made between Chapter 13 bankruptcies that were discharged and those that were dismissed.  The waiting period required for Chapter 13 bankruptcy actions is measured as follows: 

Two (2) years from the discharge date to application date, or 

Four (4) years from the dismissal date to application date. 

The shorter waiting period based on the discharge date recognizes that borrowers have already met a portion of the waiting period within the time needed for the successful completion of a Chapter 13 plan and subsequent discharge.  A borrower who was unable to complete the Chapter 13 plan and received a dismissal will be held to a four-year waiting period. 

Borrowers with multiple bankruptcies are ineligible