I have been in chapter 13 for almost 3 years. I sold my home and bought a new one, pending approval from trustee. My attorney assured me both would be approved. trustee approved sale but objected to purchase and wants more proof I can afford it. Has anyone successfully purchased a home while in chapter 13? And if so, what was the process?
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Welcome to BKForum.
I'm sure someone will be along to explain the process, but you are going about it the correct way. The Trustee must insure that the property is affordable and will likely use the existing home as a yardstick. That yardstick, so to speak, will be used as a gauge to how much you can afford. It's a starting point. The Trustee is just ensuring that you can actually afford the place without causing any issues with the existing Chapter 13.
I would fathom to guess -- and I considered buying while in a Chapter 13 -- that the Trustee will look to your current expenses, your current housing costs (mortgage PITI), and your other expenses. That will be viewed in relation to this new home and expenses.
Congratulations on the sale and purchase.
Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.
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