bankruptcy?

Question

I was told that even though I filed bankruptcy, I could still sell my house and give all profits to the court, but my monthly bankruptcy payment won't change???? Is this true??? Why??? I want to get out of my house but I cannot afford to pay on the bankruptcy and a new place to live, shouldn't they deduct the amount of the house payment out of the bankruptcy payment???? Serious answers only please.

Answer 1

If you were told that your payments would not change, I can only assume that yor plan is being paid pro-rata. This means only a portion of your unsecured debts are being paid back. This is usually due to the debtor (you) having a low income, and/or little equity in property. Depending on the equity available in your house, the payoff the court receives will probably not result in a full payoff of your debts.
Trust me, if the full 100% of your debts gets paid by the sale of your home, your case will be concluded and you will not have to continue paying.
What is the homestead exemption in your state? Keep in mind that you will be entitled to that exemption, and will receive that money from the sale of your home. In NY this exemption is $50,000. ask your attorney about that exemption.
If YOU sell your home, and you think that you will get enough money to payoff the BK, simply request a payoff figure from you trustee. At closing, the trustee is cut the check, and your bk is concluded.
If you surrender to the court and let them sell it off, they will do the same thing, but there WILL be more fees added due to the expenses the court incurs while selling the home.
Good Luck, and please be sure to consult your attorney.

Answer 2

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RE Bankruptcy?

I was told that even though I filed bankruptcy, I could still sell my house and give all profits to the court, but my monthly bankruptcy payment won't change???? Is this true??? Why??? I want to get out of my house but I cannot afford to pay on the bankruptcy and a new place to live, shouldn't they deduct the amount of the house payment out of the bankruptcy payment???? Serious answers only please.

Answer 3

You can talk to either your attorney or the trustee about doing a recast of your bankruptcy (I think that is what it is called). I have had clients that have had their BK payments lowered so I know that it can be done. Good luck!