Can I buy a house or a car while I am in bankruptcy?

Can I buy a house or a car while I am in bankruptcy?

It is possible to purchase a house or a car while you are in bankruptcy. If you plan on financing the property, you will need to get court permission. Permission can be obtained several ways depending on the type of bankruptcy you are in and where you stand in the bankruptcy process.

In a Chapter 7

If you are a chapter 7 Debtor, you have two options.  You can either wait until your case is discharged, or you can make the purchase once the 341 meeting has been held and concluded.

In a Chapter 13

If you are a chapter 13 Debtor, in order to incur new debt your case must be confirmed.  If your confirmation hearing has been concluded our office will need to file a motion with the Courts for approval.  You will need to consult with your attorney or paralegal to determine if there are any additional attorney fees involved. In order to have the motion filed, you must provide all finance documents, along with updated income and expenses.  We will need to show the Courts that you will be able to afford this purchase.  Once all items requested have been received your motion will be filed with the Courts.

If you are a chapter 13 Debtor in the Dallas Division and your case is confirmed, you can request permission from the Trustee. Please provide our office with the completed Incur Debt Packet. Once we receive the completed packet along with all requested documents, we will forward it to the Trustee. The Trustee will then review your request and provide you with their response in writing.  However, not all Chapter 13 Trustee offices allow this procedure.

 

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