Bankruptcy Attorney serving Carmichael discusses – Can you buy or sell a house while in Chapter 13?
The answer to this question is simple: Yes, there is nothing that legally prevents you from buying or selling a house.
Buying a house
If you want to buy a house while being in Chapter 13, you have to get an authorization from your trustee to incur new debt. Typically, you have to file a motion and explain where the money is coming from, what the monthly payments will be and how you will be able to afford them.
Selling a house
You can sell your house when in chapter 13 bankruptcy. Typically, you will have to file a motion to sell the property, in which you explain your reasons for selling. If there are proceeds, you will also need to explain what you will do with that money, be it making a down payment on another property, giving it to the trustee, or anything else. Once again, getting the approval can add several weeks to the process of selling your house.
In both, buying and selling property while in chapter 13, there is a lot of legal preparation involved. I recommend that you get the help of a bankruptcy attorney to make sure all the paperwork is filled out correctly and the entire process is smooth.
Please contact our Sacramento office serving Carmichael at 916-313-9069 or via email at info@california-bankruptcyattorney.com for a free consultation. We may be able to help you with your problems.
