Minneapolis, Minnesota: Big Purchases after Filing for Bankruptcy
You may worry about large purchases you make after filing bankruptcy. Will it hurt your case? Will the asset be a part of the case? Do you need permission from the court to spend money? This blog will explore the answers to these questions, as well as many others.
First of all, bankruptcy filings consider transactions and assets that occurred before and after the filing date. If you purchase something after filing, it will not be included in your bankruptcy estate. Bankruptcy only includes debts incurred before filing. If you finance something after you filed, that debt is still yours and not dischargeable in your case.
Second, you may need court permission for a big purchase after filing bankruptcy. If you are buying a house as part of a chapter 13, you should consult your attorney, since your case trustee may want to approve the purchase. You may not need permission if you finance a car after filing depending on the case type and trustee. In a Chapter 13 case, the court will not approve of new debts that could hinder your case. Therefore, trustees will consider approving larger financing.
What happens if the purchase is large but not a house or car? You may not need permission. However, you should ask your attorney for advice if you have any concerns or questions about the purchase. Your attorney can tell you if there are any specific steps you need to take.
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