Yes, you can buy a house while in Chapter 13 bankruptcy under some restrictions. However, you must obtain approval from the court overseeing your case and you must find a willing lender. Most loans, including FHA loans, require that you have been in the case for at least one year and that all the payments on your repayment plan are current. You can sell a house while in Chapter 13 bankruptcy under a few conditions. First, you must receive approval from the court overseeing your case. You must also notify your creditors, who will have the option to object. Barring any objections, you are free to sell, however, the proceeds from the sale will become a part of the bankruptcy estate and will be used to pay back your creditors.Can You Sell a House While in Chapter 13 Bankruptcy?
Can I Buy a House While in Chapter 13 Bankruptcy? FAQs
Yes, you may be able to purchase a house while in Chapter 13 bankruptcy. However, it is important to consult with your trustee and attorney before doing so to ensure that any new debts incurred do not interfere with your repayment plan or otherwise negatively affect your ability to discharge the debt when the bankruptcy is completed.
Yes, you will generally need approval from your trustee before you can take on any additional debt during the bankruptcy process. This includes taking out a mortgage loan for a house or other real estate property. Your attorney can help you obtain the necessary permission from your trustee in order to move forward with purchasing a home.
Individuals filing for Chapter 13 bankruptcy may be eligible for either FHA loans or conventional mortgages, depending on their financial situation and credit history. Your attorney can help determine the type of mortgage that would best suit your needs and provide guidance on how to go about obtaining one.
The timeline for being able to obtain financing for a home purchase while in Chapter 13 varies according to individual circumstances. Generally speaking, you will need to wait until at least 12 months after filing before applying for a mortgage loan or other financing.
Yes, you may be able to use the equity in your current home as a down payment when purchasing a new property during Chapter 13 bankruptcy. However, it is important to check with your trustee and attorney before doing so, as they can provide guidance on how to ensure that this does not affect your repayment plan or interfere with any other aspects of the bankruptcy process.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.
