Filing bk AFTER buying a house

[Geds75]

I just bought a house and am in the position of maybe needing to file bk. Will a trustee or judge immediately deny the bk case based on this? I live in Ohio and the equity in the house is way less than the amount that is covered in the state. If my wife and I could get a fresh start on our credit card and medical debt, we could much more easily provide for our family and finally start saving for retirement. As it is, I can only afford the minimum payments and the interest has blasted the balances over the credit limits. I will never get ahead of these cards. I considered trying to settle if I could get my hands on enough cash, but Ch 7 seems like a valid option (if we pass the means test).

So, buying a house and THEN filing for bk. Doable or a I screwed?

[despritfreya]

Done all the time. Just make sure you describe in the Statement of Financial Affairs, as a transfer, the down payment you gave (if any) and where those funds came from. Also make sure you list the home on Schedule A and the mortgage on Schedule D.

Des.

[Geds75]

Done all the time. Just make sure you describe in the Statement of Financial Affairs, as a transfer, the down payment you gave (if any) and where those funds came from. Also make sure you list the home on Schedule A and the mortgage on Schedule D.

Des.

Thanks for the reply. I'll be using a lawyer for this, so I'm counting on him to know the ins and outs of the process. I just wanted to know if this is something that is possible.

[PANSYFACE]

Just make sure that you carefully check everything that is presented to you. My attorney was terrific, the person who typed up things, not so much. I had to correct 3 versions of my petition before I was convinced that everything on it was correct.

[Geds75]

Just make sure that you carefully check everything that is presented to you. My attorney was terrific, the person who typed up things, not so much. I had to correct 3 versions of my petition before I was convinced that everything on it was correct.

Thanks for the heads-up. I hope the lawyer is on top of things, but it never hurts to do your own due dilligence.

[Ruthdavis]

I see many people who purchased a home and able to file for bankruptcy and lose no assets. If you try to buy a home after BK filing, that would be a very difficult situation since you will have a BK on your credit report for 10 years. So I believe, buying before filing is a better option.

[brokehmowner]

I see many people who purchased a home and able to file for bankruptcy and lose no assets. If you try to buy a home after BK filing, that would be a very difficult situation since you will have a BK on your credit report for 10 years. So I believe, buying before filing is a better option.

It's really not that difficult to buy after filing. You pretty much have to be discharged for two years for government loans and a little longer for conventional. We have 2 bk's in our history. The 1st one we purchased a home 2 years after discharge back in 2004. We were unfortunately forced to file again in 2013. This time we learned a valuable lesson ... NEVER let cc balances carryover. If you don't have the money to pay the bill WHEN YOU CHARGE, don't charge. Don't ANTICIPATE having the money when the bill comes. We have really stayed on top of things for this past 3.5 years, rebuilt our savings and have not paid a penny in CC interest, though we have several cards. Our score is up to 715 and we have no issues getting credit. Again the key DON'T CHARGE IF YOU DON'T HAVE THE MONEY TO PAY THE BILL AT THE MOMENT YOU CHARGE.