Legal Question in Bankruptcy in Ohio

conversion from chapter 13

we are 1/3 way through a chapter 13 plan. All payments on time and paying 100% of filed. We have had an offer on our home, which we have no equity built up in. The offer is about the same as we owe. If we choose to sell and break even, Can we convert to a program where we completely default and no longer pay. Just start over?


Asked on 1/31/03, 6:46 pm

1 Answer from Attorneys
Jay Maynard Attorney at Law

Re: conversion from chapter 13

You need to contact your attorney immediately who is handling the Chapter 13 case. You signed a document when you entered into the Chapter 13 program not to sell or transfer any assets without permission from the court. Your attorney will prepare a Motion to Modify Chapter 13 Plan, which will allow you to sell the home. The attorney will also prepare a new Schedule I and J which can either reduce or increase your Chapter 13 payment.

However, if you should sell the home and make a profit over and above the current mortgage owed, you can use the proceeds to pay off your Chapter 13 plan as long as you have been in the plan a minimum of 3 years.

Again I urge you to contact your attorney immediately before proceeding.

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Answered on 1/31/03, 11:10 pm


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