Can we receive money from my mother to purchase a house after we recently filed bankruptcy without repercussion?

UPDATED: Feb 9, 2012

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Can we receive money from my mother to purchase a house after we recently filed bankruptcy without repercussion?

We (my husband and I) filed Chapter 7 almost 3 months ago. We appeared in court last month. We are trying to find a foreclosure or HUD home to buy. My mother has the money to purchase a home as an investor but can she just give the funds us so we can buy as owner / occupants instead of having to wait for the investors window. Waiting on the investors window is taking away our chance of getting a decent house.

Asked on February 9, 2012 under Bankruptcy Law, Georgia


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

No, you will not qualify to do so and to do so could void your bankruptcy or automatically have your new home be an asset from which the court/trustee must be informed of or use to dismiss your case. You are seeking a full discharge. Your credit report will already show this bankruptcy and even if you have the funds, you will have to show this as an asset in your bankruptcy. Consider an alternative or have the court dismiss your bankruptcy or switch it to a Chapter 13 to reorganize your debt in such a way you can pay it back.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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