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Consumer Bankruptcy : Chapter 7, Chapter 13, Protection From Claims of Creditors
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Old 05-23-2005, 08:18 AM
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Join Date: May 2005
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Question

?'s about selling house to get out of Chapter 13


What is the name of your state?What is the name of your state?What is the name of your state?What is the name of your state? New Jersey

Hi...

I have recently posted about my desire to end my bankruptcy plan early because of an impending seperation/divorce. I have a related question- not about paying the plan off early...but about selling my home in order to pay all my debts at 100% and be out of the bankruptcy completely.

I'm not even sure this is feasible. I know I'd need to have some numbers crunched and get permission from the Trustee to sell. My big questions, though, are the following:

If I go this route, would I be forfeiting the homestead property exemption I would be entitled to if I converted to a Chapter 7?

What amount would I be paying my unsecured creditors? I thought it would be the amount that was filed at the beginning of my bankruptcy. However, I recently heard that unsecured creditors would probably go after any and all equity I have in my house by saying that I not only owe what I did at the time of filing, but also 28 "payments" that I missed during the time I have been in BK, along with accrued late payments for each of those 28 months. If this is the case, and I also had to pay the Trustee for distributing these funds to them, I'd probably end up OWING money by the time the house was sold.

Does anybody know the answer to this?

Thanks again!
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