Buying New Assets After Filing a St. Louis Bankruptcy

Purchasing new assets after you file for bankruptcy is possible regardless of which chapter you file. In the case of a St. Louis Chapter 7 bankruptcy, any assets you buy after the date of filing is outside the Chapter 7 Trustee’s reach. These post-petition purchases cannot be touched by the Trustee, so there is no risk of it being liquidated. For instance, if you file a Missouri or Illinois Chapter 7 on September 1st, and then buy an automobile on September 2nd, there is nothing that the Trustee can do with that asset (because it is not considered a part of the bankruptcy estate).

When you file a St. Louis Chapter 13 bankruptcy, things are a little different. A Missouri or Illinois Chapter 13 involves a Chapter 13 plan. This plan dictates how much each creditor will be paid, and runs from three to five years in length. During this period of time, it is necessary to get permission from the court if you wish to finance a new purchase (such as a house or car). This is done by filing a Motion to Incur New Debt. The Chapter 13 Trustee will review the motion, and if there are no objections, the financing agreement can go through. On the other hand, it always possible to simply purchase the asset outright (like when you pay for a car in full, leaving no remaining balance to be financed). This latter option does not require permission from the court.

Ultimately, the entire point behind filing a St. Louis bankruptcy is to get a fresh start / clean slate. It is a chance to wipe the slate clean, so that you can restart your life fresh. And one of the best ways to begin moving forward is reestablishing your ownership of certain assets (so that you can rebuild your credit, jump start your finances, and continue down the road to financial stability).

The affordable St. Louis bankruptcy lawyers at The Bankruptcy Company have been helping people achieve these goals for years. Our staff is prepared to guide you through the process from beginning to end, and all phone conversations and office consultations are free of charge.