Trustee's approval

[iwillriseabove]

Hi, all. Long story short, husband and I filed and were confirmed last summer. We are separated and are selling our house. Due to the market, we are basically going to just clear the note and the arrearages with the contract we have. Our attorney is asking the trustee for permission to sell it. My question is this: What are the circumstances that they wouldn't approve it? We won't be making a dime off of it. Does this matter?

[HHM]

I don't think they ever "not approve", in fact, it is not really that you need the trustee's "permission", you need to inform the trustee and depending on the nature of the transaction, the trustee may have some conditions.

I wouldn't worry about it too much.

But, the question the trustee asks, will there be any detriment to the creditors if the transaction goes ahead as planned. The trustee is really only looking to see if their is any non-exempt equity as a result of the sale.

[Flamingo]

Any financial move during a Chapter 13 that may involve a profit to the debtors needs to be approved by the Trustee. Going through with a house sale, refinancing, etc. without that permission can result in a dismissal. Not a good thing. You will probably need to provide all settlement documents to the Trustee prior to and after the sale/settlement.