Should I voluntarily dismiss, sell my house to settle with the creditors or redo my chapter, surrender my house and the hope to be granted discharge? 6 Answers as of December 01, 2016

I am 3 years into my 5 year Chapter 13 plan. All of my arrears are caught up and according to the trustee. I have $65,000 left if I pay 100% to creditors (all are unsecured loans and credit cards). I just checked with a realtor and my house can sell from $290,000 to $307,000 and my balance is $182,000, which would give me a little over $100,000. I'd love to get from under this bankruptcy if I can do it in a smart manner. Another 2 years of this when I have equity in my house (that I'm renting out) just doesn't make sense to me anymore. Any advice would be greatly appreciated.

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You better see competent local counsel. I don't know which state you are in - and every state has different "exemptions." You could have the case looked at again to see if you still have to pay 100%. If your income has gone down you could modify the plan. But even if you can't modify the plan, what you pay in ch13 is without the compound interest. Debt settlement companies are generally much more expensive and can guarantee you nothing.
Answer Applies to: California
Replied: 12/1/2016
OlsenDaines | Rex Daines
Dismissing, selling and negotiating with creditors was historically a good idea but you need to realize that the creditors can access your bankruptcy court documents and they can estimate the value of your home which might make it difficult to negotiate. Since you have been renting out the home, you also need to discuss this plan with your tax preparer as well to see how much you might owe in taxes if you sell the home. You might need to move back into the home for a time before selling it to minimize any tax consequences. Your plan is basically exchanging one known path (paying off the chapter 13 over time) with a whole lot of unknowns.
Answer Applies to: Oregon
Replied: 11/28/2016
Timothy Casey Theisen, P.A. | Tim Theisen
Way too complicated to conclude what's the best option on those facts. If you can't sit down with your attorney to go through options, you should schedule a consultation with another attorney.
Answer Applies to: Minnesota
Replied: 11/28/2016
A Fresh Start
A Fresh Start | Dorothy G Bunce
Your chapter 13 attorney should be testing the waters to see if this deal can be implemented by settling at a discount. You definitely should not be reaching out to the creditors as you may inadvertently let the cat out of the bag and say something that will jeopardize the offer you may receive from your creditors.
Answer Applies to: Nevada
Replied: 11/28/2016
GARCIA & GONZALES, P.C. | Richard N. Gonzales
The best advice I can give you is to pay an experienced lawyer to review your file with you, and go over the pros and cons. You have a number of options, but I hate to hazard a guess without looking at your entire file. This is like me going to a website of doctors trying to describe an ex-ray taken three years ago and how I'm feeling now, and seeing if one of the doctors can tell me what to do about my current symptoms. You can do what you want, but a face to face meeting with someone knowledgeable will hold you in good stead.
Answer Applies to: Colorado
Replied: 11/28/2016
    Garner Law Office
    Garner Law Office | Daniel Garner
    It is possible to pay off a chapter 13 early. You would need to get a payoff quote from the trustee and file a motion to sell your property with copies of the motion sent to all your creditors. A lawyer could help you with this and might be worth the extra expense.
    Answer Applies to: Oregon
    Replied: 11/28/2016
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