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Before filing for Chapter 7, can I buy a house via a land contract with an immediated family member?

Posted on: 05th Mar, 2009 05:42 pm
Before filing for Chapter 7, can I buy a house via a land contract with an immediated family member?...Plan would be for an immediated family member to purchase a house and then sell it to me via a land contract. I would be making a payment of several thousand dollars to the immediate familiy member following signing of the land contract. Then I would be filing for Chapter 7. Is this legal in Michigan?
hi guest!

welcome to forums!

i don't think this is a very good idea. once you buy the property through a land contract, it will be considered a your asset and there are chances that you may not qualify for chapter 7 bankruptcy under the means test.

i would rather suggest you to speak to a bankruptcy attorney in this regard and get his opinion on this issue.

feel free to ask if you have further queries.

sussane
Posted on: 05th Mar, 2009 08:10 pm
how long do i have to wait to buy a house on land contract in ohio
Posted on: 01st May, 2009 04:34 pm
Hi Dwight!

Welcome to forums!

As far as I know, in order to get a FHA loan after Chapter 7, you'll have to wait for 2 years and to get a conventional loan, you'll have to wait for 4 years.

Feel free to ask if you have further queries.

Sussane
Posted on: 03rd May, 2009 10:50 pm
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