Legal Question in Bankruptcy in New York

Selling House

My husband and I have filed Chapter 13 bankruptcy and have our house on the market to sell. What are we legally bound to repay once the house sells? I know we have to repay the back mortgage and the home equity loan. I need to know if we are also legally bound to repay the other credit items. That will determine how much we need to ask for the house. We need to make enough money to repay what we have to, and still have enough left over to start over somewhere.


Asked on 11/09/03, 9:34 pm

1 Answer from Attorneys
Andrew Nitzberg Andrew Nitzberg & Associates

Re: Selling House

You have taken the first steps on putting your affairs in order. But you may be unclear regarding what CH 13 is:

CH 13 is an asset-based bankruptcy. Under that form, you must submit a 'plan' to the trustee to re-pay your creditors. The trustee will evaluate the plan and approve it if it seems reasonable. Thereafter, you are protected from your creditors only as long as you follow through on the terms of the plan.

I recommend that you speak with a legal representative on your Bankruptcy. You may choose to file under a different CHapter. This is a simple matter, done everyday.

But you clearly need more information. It is obvious to me that these things have not been accurately and fully explained to you.

You are welcome to a consultation with me for no fee at my offices at 42 West 44th Street. Please call for an appointment first, (646) 591-5786.

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Answered on 11/10/03, 2:00 pm


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