Can we sell our house after filing Chapter 13 bankruptcy? 10 Answers as of May 02, 2011

If I am 16 months into paying a 60 month Chapter 13 payment schedule and decided to sell our house (which we managed to keep, and yes it has some equity) what would the ramifications be?

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Bankruptcy Law Office of Robert Weed
Bankruptcy Law Office of Robert Weed | Robert Weed
You really need to talk carefully with your bankruptcy lawyer, because different courts have different view on this. Some judges will allow you to sell the house and pay your Chapter 13 off early. Some will decide that your financial situation is improved and they will want more money form you.
Answer Applies to: Virginia
Replied: 5/1/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
You would need to get approval from the court.
Answer Applies to: Washington
Replied: 5/2/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Before you make any changes while you are in Chapter 13 Bankruptcy you should speak with your attorney. You will likely have to get permission from the Court and the Chapter 13 Trustee.
Answer Applies to: New Hampshire
Replied: 4/29/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
In California the proceeds from the sale of the house would be exempt for 6 months. I don't don't which state you are in and I am only licensed in California. You should check with your lawyer.
Answer Applies to: California
Replied: 4/28/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
If your plan is paying less than 100% to your unsecured creditors, and there is equity in the home ABOVE the amount of any homestead exemption you claimed, then you would likely need to turn over the amount of proceeds in excess of your homestead exemption to the Trustee in your case. You need court approval to sell the home in any event.
Answer Applies to: California
Replied: 4/28/2011
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    Only your attorney can answer your question. That is why you hired them.
    Answer Applies to: Alabama
    Replied: 4/29/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    Yes, you can sell the house but the Chapter 13 trustee will have to review the sale and may have to give his approval.
    Answer Applies to: California
    Replied: 4/29/2011
    Law Office of David P. Farrell
    Law Office of David P. Farrell | David Farrell
    You should speak to your attorney. You need court approval to sell the property in chapter 13 and, of course, the trustee is going to be interested in any non-exempt equity sale proceeds. You may be able to convert the case to another chapter or stay in your plan and obtain a chapter 13 discharge. If your case is dismissed your creditors will be in the same position they were in before the filing, less credits for amounts paid through the plan.
    Answer Applies to: California
    Replied: 4/29/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    You must first seek permission from the Chapter 13 trustee to sell your house. The trustee may require some payment from proceeds of sale, depending on how much it is.
    Answer Applies to: California
    Replied: 4/29/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    Yes, you can sell the house if the house payment is not part of your Chapter 13 plan payments. However, in all events you have to complete at least 36 months of a Chapter 13 plan. If you sell your house and have additional disposable income due to no longer having a mortgage payment, the Chapter 13 Trustee can modify your plan payments upward for the months remaining, for at least the 36 month minimum. The exact requirements also depends on the Bankruptcy District where your case was filed.
    Answer Applies to: California
    Replied: 4/29/2011
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