Can I buy a house while in Chapter 13 Bankruptcy?

Can I buy a house while in Chapter 13 Bankruptcy?

Yes! A motion to approve the purchase of a property does need to be completed through the Bankruptcy court when taking out a new loan to purchase a home. The documents needed are listed below and there are two options for the motion. We can file the motion and have it heard on standard time (about 5-6 weeks, the standard time for escrow) or on OST (order shortening time) which is usually complete in about 2-3 weeks. These time frames are estimates and include preparing the filing the motion and noticing time. Each option carries additional attorneys fees, as a Motion to Approve Purchase is not in our Basic Services.
 
Documents Needed:

1.      Loan approval with estimates to include the total loan, interest rate, payment and term 
2.      Declaration stating why you are purchasing a property
3.      Estimate Settlement Statement from the Title Company
 
Payments can be paid up under a separate limited retainer up front, via ACH installments or through the bankruptcy plan**:
Standard Time- $550.00
OST (rush)- $1,000.00
**Adding fee's through the bankruptcy plan requires the plan to be modified or amended. Additional fees for this may apply. 
 
When you are ready to start the purchasing process, immediately let our firm know. Should you need a mortgage lender well versed in working with active Bankruptcy Clients, please inquire and we will share their contact information. 
 
Once you have your approval and have opened escrow, please send all documents requested and discuss the additional attorneys fees with our office.

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