Legal Question in Bankruptcy in California

Re: Bankruptcy Payoff

In Indianapolis there used to be a saying -- "Your carcass belongs to Joe Hayes." (Maybe they didn't say "carcass".) Joe Hayes owned a glue factory. In a bankruptcy, it might be said that the debtor's carcass belongs to the bankruptcy trustee. The trustee in effect has legal title to everything the debtor owns; then the debtor gets to use his or her things or even own them, if the bankruptcy trustee approves. In a routine bankruptcy case, all this happens with very little fuss, and the debtor may easily imagine that there was no transfer of control. However, a debtor will not be able to borrow money secured by the assets of the bankruptcy estate without the consent of the trustee, nor without a notice to creditors, nor without an order of approval from the bankruptcy judge. So it's not such a simple procedure, and you should be happy to pay your attorney well for the service.

Re: Bankruptcy Payoff

In order to sell you house you must file a motion for authority to sell the property. You must follow both the Federal Rules of Bankruptcy Procedure and whatever local bankruptcy rules your jurisdiction has. If approved, you can then file a motion to modify your plan so that it is paid off early. If after reviewing all the required rules and regulations you still find this simple, then by all means proceed on your own.