Can I buy a house while in Bankruptcy
Many people who go through bankruptcy don’t know that they can buy a house while they are still in bankruptcy. This pertains particularly to the Chapter 13 debtors. The first step you will want to take is to find someone who is willing to lend you the money to buy a house. It may not be as easy as it once was, but if you find the right person to work with, you can make it happen.
After you have someone to work with, and you know how much you are going to finance, how much the interest rate is, and how much your monthly payments are, you will have to submit a good faith estimate. Provide this to your attorney’s office with updated pay stubs and updated expenses. Then they will have to file a motion to incur debt for the purchase of the house. There are attorney fees associated, so you will need to check with your attorney’s office to see how much they charge. The hearing will be 30-45 days out. If there are no objections by the trustee or creditors, then the order granting the motion will be uploaded with the courts. Once it is uploaded, you must now wait for the Judge to sign the order and have it entered with the courts. Now you are ready to go and finish your closing.
If you are in a Chapter 7 it is not necessary to go through this process. All you have to do is find a lender to lend you money and you are on your way. You may have to wait until discharge, but that is usually only 4-5 months down the road.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
