Legal Question in Bankruptcy in Virginia

can I sell my house and pay off my chapter 13 plan early ?

I am presently be in chapter 13 for over 2 years. I reatained my house and have not missed a house payment. I also have not missed any payments to my trustee. Can I sell my house and payoff the approximate$15,000.00 on my chapter 13 plan and get out early? Do I need permission from the trustee to sell my house or can I sell it and pay my plan off without notifying him?


Asked on 1/21/04, 5:03 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: can I sell my house and pay off my chapter 13 plan early ?

Arguably you should be able to, but the practice at least in the Eastern District of VA (Alexandria, and probably Richmond and Norfolk/Newport News), is to require all (or at least all non-exempt) proceeds/profits on the house to be paid into the plan, up to a 100% payout to creditors. However, if you refinance, you can pay off the plan for the balance due on the plan.

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Answered on 1/21/04, 6:44 pm


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