Buying house before BK

[staylor]

Because of business Im going to have to file chpt 7 bk soon. My credit is good enough to buy a house now. Should I buy then file? why or why not? THANKS

[tobee43]

are you just filing your business or personal as well?

[staylor]

Personal first to get rid of personal guarantee then business.

[tobee43]

Personal first to get rid of personal guarantee then business.

well you aren't doing both???? with a S corp it may be good idea, i would check that out with your atty.

under those circumstances, i would not purchase anything. it could be considered fraud if you have enough for a down payment for a house, but don't pay your creditors..trustee's don't like that much.

however, it would be interesting if you were able to buy a place with NO down...and has no equity..(remember the trustee can make you an asset case, and take your assets). so i really would run this all by your atty. the last thing you want is a possible fraud case against you for hiding assets...that is if you had enough money to buy a house, yet not pay your creditors.

i'm certain there will be more that chime in with other aspects of the pros and or cons.

best of luck!

[staylor]

Just returned from Afghanistan. VA loan that I just qualified are zero down. But bk is because of business that Im personal guarantor on that failed. I could never repay 400,000 in debt. even for the rest of my life.

[tobee43]

Just returned from Afghanistan. VA loan that I just qualified are zero down. But bk is because of business that Im personal guarantor on that failed. I could never repay 400,000 in debt. even for the rest of my life.

welcome HOME!!!!

i would just be concerned if that house has any equity, your trustee will force the sale to pay creditors. it's something you may have seriously think about. i.e. you may buy this place tomorrow, just as you settle in, you file bk and the trustee says there is 100k worth of equity and will force the sale to pay off your creditors. i would run it by your atty.

[staylor]

Thanks. I will have to ask him. Thanks for your help. Yes your right with the equity. However in todays economy and its a track builder there wont be any equity.

[tobee43]

Thanks. I will have to ask him. Thanks for your help. Yes your right with the equity. However in todays economy and its a track builder there wont be any equity.

if that's the case, i mean you are allowed to LIVE!! and pay rent, so what's the difference, you are allowed to have a roof over your head in a bk. what's the difference if you're paying the bank as opposed to a landlord and you got the house with no downpayment, so there is no question about any funds that could have gone to the creditors.

i think this is a very interesting situation. i really hope you can buy this house!!

[staylor]

Thanks. Ill ask attorney and see what he says?

[tobee43]

Thanks. Ill ask attorney and see what he says?

do and make sure you up date the forum with your progress!!! i really wish you the best! and we're here for support if you need a shoulder or two or ten...!!

[keepsmiling]

Thanks for your service to our country.
I hope you can do it. Best of luck!

[despritfreya]

There is nothing wrong with you purchasing a home prior to filing bk. Your purchase of the home is not being done with the "intent to hinder, delay or defraud" anyone therefore the Trustee is not going to question it. You are entitled to purchase a home. You indicate that you will be putting $0 down. Even if you were not, Utah's exemption is 20K. . . 40K if you are married therefore having that equity in the home is not an issue assuming you are using Utah's exemptions.

Happy house-hunting and thank you for your service to this Country.

Des.

[tobee43]

There is nothing wrong with you purchasing a home prior to filing bk. Your purchase of the home is not being done with the "intent to hinder, delay or defraud" anyone therefore the Trustee is not going to question it. You are entitled to purchase a home. You indicate that you will be putting $0 down. Even if you were not, Utah's exemption is 20K. . . 40K if you are married therefore having that equity in the home is not an issue assuming you are using Utah's exemptions.

Happy house-hunting and thank you for your service to this Country.

Des.

thank you ! again for that clarification!