has anyone on here ever sold thier house while in chapter 13 bankruptcy? we are needing to move near my grandmother and therefore need to sell house. we will be renting a home from some relatives when we move there. if you have sold your home in similar situation how did this affect your payments to the bankruptcy plan.did they reevaluate your budget and did this cause any problems? we know that we have to present our contract of sale to the trustee for approval and wait for answer for up to 30days. also, will we be able to keep any gain from the house say for moving expenses or will all of it be soaked up into our plan? please tell me your experiences as i am finding it difficult to know what this will actually do to us once we start the process....our monthly budget will still be fairly similar. rent will be slightly cheeper but pay in that area is typically a bit lower than where we currently live. thank you for all replies.
2006-08-29 04:30:18 · 3 answers · asked by serinnea 1 in Business & Finance ➔ Renting & Real Estate
Based on what happened with a family member, the gain will be taken into consideration. In his case, it pretty much wiped out all of the debts. He wasn't too happy losing his "windfall" but couldn't argue with being debt free finally.
You'll have to work with the trustee on moving expenses, etc.
2006-08-29 04:39:18 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You need the trustee and the court's permission before you even put the property up for sale and provide for an amended plan if it affects the original repayment plan in any way. Like eliminating lien holders.
Under the old rules your house was exempt from seizure so I am assuming unsecured creditors would only have minimal say as to how the proceeds where used. Don't go out and buy any "toys" with it. If it is used for housing purposes and for repayment of secured creditors I don't see a problem.
2006-08-29 04:58:58 · answer #2 · answered by Sam B 4 · 0⤊ 0⤋
An estate has been set up for your assets, you can not sell that property until the trustee has approved it and the creditors meeting show their approval. It is also contingent on your plan of repayment being approved.
Contact your court appointed trustee in the case.
2006-08-29 04:36:33 · answer #3 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋