Some people think that a Chapter 13 Bankruptcy means you cannot incur any new debt or purchase any new real or personal property for the five years of your bankruptcy plan. The good news is that this is simply not true. There are, however, special rules that apply in order to incur new debt to purchase property while in a Chapter 13 Bankruptcy.
The most common situation in which clients incur new debt while in a Chapter 13 Bankruptcy is with the purchase of a new vehicle. Your Bankruptcy attorney will file a Motion to Incur Debt with the Court which the Court will need to approve before your can take out a loan to purchase a new vehicle. As long as the terms of the new loan are reasonable, the Court is generally willing to approve these Motions. Contact your attorney at O’Bryan Law Offices to discuss the terms and requirements for a new vehicle loan while in Bankruptcy.
Another common situation in which clients incur new debt while in a Chapter 13 Bankruptcy is with the purchase of a home. Often, clients sell homes while in Bankruptcy, which requires a separate Motion to Sell which your attorney at O’Bryan Law Offices will be happy to handle for you. But after clients sell their home, they often need to purchase a new one during the pendency of the Bankruptcy. Other times, clients will be moving from a rental into a newly purchased home while in Bankruptcy. In either situation, in order to incur new debt on a new mortgage for your new home, your Bankruptcy attorney will file a Motion to Incur Debt with the Court. Once again, if you find yourself in this situation, contact your attorney at O’Bryan Law Offices to discuss the information needed for the Motion to Sell so that we can get started getting you approved for this new purchase as soon as possible.
If you have any questions about incurring debt to purchase property while in Bankruptcy or are interested in learning more about your options through bankruptcy, contact O’Bryan Law Offices today to schedule a consultation with one of our experienced bankruptcy attorneys. Call us today at 502-339-0222 for a free bankruptcy consultation.
