Sell House to Pay off Bankruptcy...

[PI_Lvr]

OK, I've made one payment in my 42 month plan and now it seems that my house is worth enough that if I sold it I could pay off my bankruptcy 100% (yes, I mean total amount owed ($75,000)). Would this be advisable?

A little more background...Looks like I'm getting divorced and would be living by myself. I have a good and steady job and have a pension coming in. I would not be paying alimony and don't have a problem moving into an apartment until I can get my credit rating back to where it should be.

Any input would be greatly appreciated.

John
Virginia

[HHM]

If you have only made one payment, and that is your situation and intention, you might save a little money by simply dismissing your chapter 13 and paying your creditors directly upon sale of your house, that way you don't pay the Chapter 13 Trustee Fee.

Why did you file a chapter 13 in the first place?

[PI_Lvr]

I retired from the Navy and when I got a new job I lost a total of about $800 a month in income. Our c/c bills totalled about 75k and the house was only listing for about 30k over what we owed. Our area has had a huge increase in property value recently and that is what has gotten me to my questions above.

[PI_Lvr]

One other question...if I had it dismissed, would they contact me directly or would I have to hunt each of them down to find out exactly how much needs to be paid?