Can rent a house after discharge from chapter 13?

Answer 1

While the c. 13 is still going, you will need to get the court's approval. You will need to have a definite house and a detailed mortgage approval. Buying the house will at least have to not adversely affect the c, 13 plan, preferably benefit the plan (lower mortgage than rent). Once the c. 13 is over and closed, it will depend on your credit-worthiness.

Answer 2

You can buy anything you want. It will be virtually impossible, especially in todays lending environment, for you to borrow money (get a mortgage) to do so. Your having difficulty in getting loans for anything (and if offered one, it will be at a arte that anyone who doesn't get themselves in financial trouble would refuse to take and would say is unaffordable) is going to be true for a number of years.

Answer 3

After the Chapter 13 plan is approved, whether the rental is included in the proposed plan or not. Until then the trustee holds all your assets in the bankruptcy estate. Once the plan is approved, you become the "debtor in possession" and can manage your property as long as you don't try anything illegal or that will harm the value of the property.

However, if you rent out your house, you will not be able to use the homestead exemption in the event your c 13 fails and you convert to a c 7 or have to file a c 7.

Answer 4

No mortgage company or bank will consider you for a mortgage while you are in C. 13. All of your excess income is supposed to be paid into the plan. The trustee and the court would have to approve it, which will cause problems for you. You will make the trustee very happy to discover you now have enough excess income to buy a house, which she will want for the plan.

Of course, paying the plan early by putting that income into the plan would speed your way to a new home!

Answer 5

If someone will rent a house to you after discharge from chapter 13, there is no law against it.