Legal Question in Bankruptcy in New Jersey

Re: Selling a house after bankruptcy

You cannot sell your property if you are in a Chapter 13 Bankruptcy without approval from the Bankruptcy Court. All parties, including the creditor are given notice of the sale. The trustee will oversee the sale. If the price pays off the claim of the mortgage company, it will likely be approved and the mortgage company and their attorneys will have to accept that. But if you are behind on mortgage and trustee payments, the lender can get relief from the stay and proceed with foreclosure. Tell your attorney to immediately make a motion for approval to sell the property - before the lenders win their stay relief motion which they surely will if you are behind on both trustee and mortgage payments - although if you filed on March 3 you are cannot be 6 months behind on mortgage. I think what you must be referring to is the arrears which are the plan payments you are making to the trustee. If the stay relief motion is for the 2 months of missed trustee payments this motion can be settled easily and any foreclosure stopped giving you time to get bankruptcy court approval for the sale of your house. Again, your attorney should be able to do this. If you don't have an attorney - get one immediately.