Legal Question in Bankruptcy in Maryland

Post-discharge, Chapt. 7: new mortgage + parental gift

I'm anticipating discharge of my Chapter 7 filing by 3/6/03. I'd like to buy a house (1st time buyer). Could a gift from my parents in the amount of $20,000 toward the purchase cause the discharged judgment to be reopened by the trustee on grounds of fraud, etc.

Also, are there any banks who will approve a mortgage for me without a co-signor or any community organizations who specialize in securing mortgages for the recently discharged in Baltimore City?


Asked on 1/15/03, 10:47 am

1 Answer from Attorneys
Carolyn Gilden Krohn Law Offices of Carolyn Gilden Krohn

Re: Post-discharge, Chapt. 7: new mortgage + parental gift

Any monies received within six months after you filed your bankruptcy, by inheritance or lump sum from a property settlement agreement, or from a life insurance policy, would have to be disclosed to the bankruptcy court. However, if your parents wish to help you buy a home, and wish to give you money, that money does not become property of the bankruptcy estate. As to getting a loan for your home, I cannot speak for any individual lenders, but you have much more of a chance to get a loan after you discharge because, technically, you have no debt and you can't file another Chapter 7 bankruptcy for 7 years! I would recommend a loan officer named Matt Eastman. He has worked with many of my clients. His phone number is (410)987-2800. Good luck!

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Answered on 1/15/03, 11:05 am


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