Can I sell a house during a Chapter 13 bankruptcy? 19 Answers as of August 01, 2011

I am about 17 months into a 60 month Chapter 13 bankruptcy. Only I filed, not my husband, and our mortgage is in his name only. So I am wondering if we are able to sell our house and if so, how it will affect my filing?

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Heupel Law
Heupel Law | Kevin Heupel
Yes, a home can be sold while in an active Chapter 13 bankruptcy, but it requires the Bankruptcy Court’s approval. You need to file a motion to sale with the Bankruptcy Court. Without a court order, the home cannot be sold. In terms of how it affects your case, it depends on your income, type of debts, and your confirmed Chapter 13 plan.
Answer Applies to: Colorado
Replied: 8/10/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You can probably do this, I do not know the terms of your order of confirmation. Worst case, you need court approval which you can get by filing a motion.
Answer Applies to: California
Replied: 8/1/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
Yes. You will probably have to amend your schedules to show the change in payments, since you will no longer have one. And add rent or a new house payment as appropriate.
Answer Applies to: Michigan
Replied: 8/1/2011
Ryan Legal Services, Inc.
Ryan Legal Services, Inc. | Kevin Ryan
yes, subject to court approval. Any net proceeds may have to be turned over to pay off your Ch 13 Plan, however. Discuss with your attorney.
Answer Applies to: Ohio
Replied: 7/31/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
You can sell the house, but it requires court approval and you will likely have to turn over any proceeds above your homestead exemption (if any) to the Trustee in your case if you are paying less than 100% to your unsecured creditors. You really need to consult with a bankruptcy attorney about this if you are not already represented by one.
Answer Applies to: California
Replied: 7/31/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    With a confirmed Chapter 13 plan, unless otherwise provided in the plan, property of the Debtor, other than future income goes back to the Debtor. Therefore the house could be sold - provided the title company agrees that the house is not part of the bankruptcy. Further, if your plan payment is based on the deduction of the mortgage payment as an allowed monthly expense, if that changes with the sale, the trustee may change you plan payment if you now have more disposable income without the mortgage to pay.
    Answer Applies to: California
    Replied: 7/30/2011
    Kalra Law Firm
    Kalra Law Firm | Madhu Kalra
    Yes, you can sell your home in chapter 13. Even though mortgage in your husband's name only, its community property and you should seek bankruptcy court permission to sell it. Most likely, Court will grant the permission to sell it.
    Answer Applies to: California
    Replied: 7/30/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Ordinarily you must seek permission from the trustee to buy, sell, or refinance real property during a chapter 13. However, if there is a non-filing spouse who has the mortgage there may not be such of a requirement. It would depend on whose name is on the title.
    Answer Applies to: California
    Replied: 7/30/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Must ask permission from court to sell your house during Chapter 13. Judge must order it. Thank you,
    Answer Applies to: California
    Replied: 7/30/2011
    Engberg Law Office
    Engberg Law Office | Harry A. Engberg
    The question is what is the money going to be used for? Did the house have any equity after the homestead rights? This will depend on how the trustee is going to look at net disposable income. The answer depends on a lot of information I do not have. Talk to your bankruptcy attorney.
    Answer Applies to: South Dakota
    Replied: 7/30/2011
    Melinda Murphy Dionne, PC
    Melinda Murphy Dionne, PC | Melinda Murphy Dionne
    You can sell property while you are in a Chapter 13 case. However, you must have the Court approve any sale. You indicated that the mortgage was in your husband's name. Is the deed in just his name? If you have no ownership interest in the home, your Chapter 13 case should have no impact on his ability to sell his home. Notwithstanding that fact, some title companies will insist that you obtain an Order approving the sale.
    Answer Applies to: Alabama
    Replied: 7/30/2011
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