Should I buy a new house or car if I'm going to file bankruptcy?

Question: I'm sure I need to file bankruptcy because I just can't make any more payments; I mean I'm running out of money. This month I won't be able to afford to make some minimum payments for my credit cards.

I had to borrow money so I took out loans and used credit cards because I got a divorce and it was expensive and we had a nasty custody fight over our daughters. Now I'm living in an apartment in Sandy Springs and I need to get a house because my girls don't want to come to the apartment because it's small and some of the people around are kind of shady. Some look like criminals, but they probably aren't, although there was a drug deal I saw in the parking lot. But I want the girls to stay over with me and I don't want them to be scared.

So now I'm looking at buying a house in Sandy Springs or Dunwoody, where my ex-wife lives. A real estate broker is showing me the houses.

But I'm planning on filing bankruptcy so I need some advice and what to do about the new home. I need to know about getting a new house. Can I buy a new house if I'm planning on filing for bankruptcy?

O.W. in Sandy Springs, GA

Answer: We counsel our clients to not make any big purchases shortly before filing for bankruptcy. The purchase of a house or even a car can certainly be considered a large purchase.

When filing a bankruptcy, whether a chapter 7 or a chapter 13, it is best not to spend or obligate yourself to spend a lot of money. The reason is that a big purchase can impact the bankruptcy and the bankruptcy trustee may object to the purchase.

We have had clients ask us if they could buy a house, car, boat or even expensive jewelry. We have advised them mostly not to until after we have filed bankruptcy.

About Us

If you have too much debt, you need to call us! End the financial mess now. When you need to speak with a bankruptcy lawyer, just call us at 678-215-4106.

Attorneys Bill Sherman and Valerie Sherman and the team at the Sherman Law Group will help you navigate the entire bankruptcy system. We proudly serve the entire Atlanta metro area and North Georgia.

Related Posts
  • Georgia Bankruptcy: Potential Problems in a Hot Housing Market for Chapter 7 Filers Read More
  • Georgia Bankruptcy: FAQ's about the Coronavirus (COVID-19) Read More
  • Atlanta Bankruptcy: What Can Filing Bankruptcy Do to Help Me? Read More

Contact Our Offices

Whether you have questions or you’re ready to get started, our legal team is ready to help. Complete our form below or call us at (678) 712-8561.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.