Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.
Yes, it is possible to purchase a home or car while in bankruptcy . If you will have to borrow money, you will have to obtain the bankruptcy court's permission before taking on new debts, including new car or home purchases. Your attorney will file with the court a Motion to Incur Debt, or in some jurisdictions, a Motion for Authority to Incur Debt.
The motion will assert that the terms of additional debt are reasonable, necessary and will not interfere with the confirmed Chapter 13 plan. The motion will be sent to all creditors and parties in the case and will also be set for a court hearing. As long as you can show that you will be able to make your monthly bills and new car payment, as well as, most important, the trustee's payment, the motion will in most cases be granted.
The most difficult thing will likely be finding someone who is willing to lend you money while in bankruptcy.