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  1. #1
    Join Date
    Jan 2006
    Location
    Summerville,SC
    Posts
    2

    Default Buying a New Home After Chapter 13 Bankruptcy

    I have read similar posts and I have a good understand now and I have a clue about what my attorney should tell me but here's my issue:

    I am 18 months into a 42 month payback plan (ch 13) and I am wanting to move. I have a house and this is where my first issue comes up. I think that I can get 130k for the house and I owe 110k. What happens to the profit?

    If I wanted to rent out the house, would that be an issue?

    I would like to buy a new house but it seems like that would be difficult. Do lenders "lend" to people like me who are currently in a Chapter 13 plan? Does the trustee have to approve the purchase ( I think that he does) ?

    TYIA

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Chapter 13 Question

    Quote Quoting derrelyrel
    I am 18 months into a 42 month payback plan (ch 13) and I am wanting to move. I have a house and this is where my first issue comes up. I think that I can get 130k for the house and I owe 110k. What happens to the profit?
    You should be able to roll the proceeds over into a new home without any problem.

    Quote Quoting derrelyrel
    If I wanted to rent out the house, would that be an issue?
    The rental income would presumably need to be reported to your trustee. By changing the nature of your home from that of your residence, you may affect your exemptions.

    Quote Quoting derrelyrel
    I would like to buy a new house but it seems like that would be difficult. Do lenders "lend" to people like me who are currently in a Chapter 13 plan? Does the trustee have to approve the purchase ( I think that he does) ?
    Yes, you would need the trustee's approval. Getting financing probably would be difficult.

  3. #3
    Join Date
    Jan 2006
    Location
    Summerville,SC
    Posts
    2

    Default

    thank you

  4. #4
    Join Date
    Mar 2006
    Posts
    13

    Default

    There are lenders out there that will refinance you while you are in Chp 13. There are different parameters, some will refinance when you have been in the plan for 12 months with timely payments. What they do is pay off your Chp. 13 and roll it into the new loan.

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