Legal Question in Bankruptcy in Connecticut

Can you sell your house if you filed chapter 13

I filed chapter 13 five years ago, since then my spouse passed away. I have been current with payments on the morgage. Is it possible to sell my home for more than what I owe, do i need special permission or can i sell it pay of the morgage and move on and out of chapter 13?


Asked on 4/06/03, 4:03 pm

1 Answer from Attorneys

Joel M. Grafstein Grafstein & Arcaro, LLC

Re: Can you sell your house if you filed chapter 13

If you are in a Chapter 13 you need the Court's permission to sell. If in fact there is sufficient funds from the sale to pay the bank and your creditors, then you can withdraw the case (its called a Voluntary Dismissal) and then pay the debts in full from the the Chapter 13. However, you have to be very sure that the closing is going to work. The other thing to measure is how much is going to be paid to creditors, if not all of your creditors filed proofs of claim, they will not get paid within the Chapter 13, but they would have to be paid if you withdraw your case. But, if you sell within the Chapter 13, the Trustee receives a commission on the total amount paid through the Chapter 13 Plan. Look at the numbers and do the math before you make a decision. Good Luck.

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Answered on 4/06/03, 8:53 pm


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