Home Exempt

[sahaley]

I am in the beginning of a ch 13 and am going to be selling my house later this year (likely). I know I need permission but I am confused on how much (if anything) can I walk away with since I have a bit of equity in the house. Current (market) value of our house is 285k (maybe a bit more) and the value of claimed exemption on our paperwork says 70k. We have a home equity loan of about 50k that was not included in our bk (nor was our mortgage). Is the home eq tied into the 70k. Say we sold the house for 310k - we currently owe 225k on it - 85k then take away the 50 for home eq for about 35k? or would it just be 70k minus the 50k home eq and give the remaining 15k to the trustee??? Did that make sense???

[athomas]

I am sure this varies from state to state. We were told we are only allowed to keep up to $40,000.00 from the sale of our home. Anything above that would go to the trustee. We have a first and second mortgage, both are included in our 13 (old law). We won't even profit that much, so it isn't a huge concern to us.

[lrprn]

...how much (if anything) can I walk away with since I have a bit of equity in the house.

Check with your lawyer to be certain, but if your home sells, typically you are allowed to keep whatever the homestead exemption is in your state.

[Flamingo]

I am in the beginning of a ch 13 and am going to be selling my house later this year (likely). I know I need permission but I am confused on how much (if anything) can I walk away with since I have a bit of equity in the house. Current (market) value of our house is 285k (maybe a bit more) and the value of claimed exemption on our paperwork says 70k. We have a home equity loan of about 50k that was not included in our bk (nor was our mortgage). Is the home eq tied into the 70k. Say we sold the house for 310k - we currently owe 225k on it - 85k then take away the 50 for home eq for about 35k? or would it just be 70k minus the 50k home eq and give the remaining 15k to the trustee??? Did that make sense???

All your debt (mortgages included) is included in your Chapter 13. Just because you are paying your first and second mortgages outside the Plan doesn't mean they are not part of your BK (you will see that pop up shortly on your credit reports as to both mortgages - that they are under BK). Yes you do need permission to sell your home in a CHapter 13. Start with contacting your attorney to get the ball rolling. Your trustee will be interested in any proceeds and your attorney can clue you in as to details when you get final paperwork, selling figures and a buyer.

Best of luck to you...