Selling house after payments completed, but before discharge

[KCC]

We are three payments away from completing our plan, and my husband is soon to be transferred to a city 250 miles away. We'll need to sell the house, mostly likely before the discharge is granted, since it seems these trustees often take their time in wrapping up a case.

If we have completed all the schedule payments into the plan, will we be able to sell the house, even though the bankruptcy isn't yet discharge? Would the trustee then think he should be able to take any proceeds from the house? Or would we get to keep what equity we have, since we've finished with the scheduled payments?

I appreciate any information anyone can give me on this.

[13inOR]

Gosh, I am not sure... if you had a less than 100% plan, there might be some issue with selling before discharge. I would check with an attorney if you have one first, its hard to say.
If you had 100% plan though, and everyone was paid in full, then the trustee would have no reason to take any more money from you.

[DOA]

I would bet that if it isn't discharged, and you didn't have a 100% plan, that the trustee would likely take and profit from the transaction to disperse to your creditors as he see's fit. Minus his 10% of course. I could be wrong, but I think the trustee has ability to decide.

[aa06a47]

Don't sell the house, keep it for 3 months and just rent at your new location if you have to. Usually, an employeer who transfers a person will foot some if not all of the lodging expenses for at least 30 days. Some, depending on the employeer even have relocation packages where they pay the real estate commission, ect....Have your husband check it out.

At the least, make sure you contact the trustee and ask him/her before doing anything. Your seeing too much light at the end of that tunnel to see it collapse on you!

[SinkingFast]

Won't there be some sort of equity exemption apply?? Or is that only for Ch 7 filers??

If you're allowed a Homestead Exemption, and you have less equity than what you can exempt, it may be OK to start marketing your home.

You really need to chat with your attny about this. I don't know that I'd contact the Trustee just yet. If you indeed cannot sell until your plan is discharged, you certainly don't wanna give the Trustee cause to hold your case open longer than the usual amount of time.

Imagine if you will, bug eyed, salivating Trustee, smacking lips, while contemplating the thoughts of getting greedy hands on the proceeds of the sale of your house.

[KCC]

Thank you, everyone, for your replies. We are indeed concerned about alerting the trustee to the possiblity of more money becoming available and him subsequently holding up the discharge so he can get more $$. We did not repay a full 100%, so I guess that's a big concern. And since it will be hard to find someone to rent to us before the discharge comes though as well, we really want it finished/settled as soon as possible.

Right now housing is oversaturated in our town, it may take some time to sell the house and I expect it would be hard to rent it out. I worry about being able to pay rent on a place in the new city, and still having the obligation to pay the mortgage.

In our state, it says the homestead exemption is $40,000. The best we could hope to end up with after selling fees and paying off the mortgage is $35,000. So I wonder if that means we are safe... Or not... We sure will need that money in the future to get a new place. Housing prices are double the cost in the new city from what it is here.

I am SO ready for my life to be my own again!! The past several years have sure been a challenge for me, emotionally even more than financially.

Thanks for the info and advice.

[aa06a47]

Did you file pro-se? If you hired an attorney, I'm sure you can pick up the phone and within a few days have an answer. It may cost you a little for the forms to be filed, ect., but you stand alot to lose if the wrong move is made. Consult a competent attorney.

[SinkingFast]

You could do what we did.

Hubby moved on ahead for the job. We stayed behind so I could get the house ready to go on the market and for son to graduate HS.

It was tough, but Hubby living here alone was a heck of a lot cheaper rent than when we came to look for a place for all of us. Family of 6. Our rent was like taking on a 2nd mortgage payment. So I can easily sympathize with you about that situation.

You could give that a go for a few months to buy you some time for your Ch 13 plan to finish.

Just a thought for you.

Even after you finish making your plan payments, there's gonna be some lag time before the discharge. The Trustee has to audit the plan. Be sure all the monies that came in were paid out and the right people got the right amount of dollars.

13inOR refi'ed their house and paid out early. A couple months ago. And they are still waiting for the final audit and discharge. There are a few other posters here that are in the same position. Plan payments finished, awaiting audit and discharge.

[bkbiker]

Hi, if at all possible, I think you should wait until you are discharged.

At the very least; this is what the bankruptcy code says;

1329 (c) A plan modified under this section may not provide for payments over a period that expires after three years after the time that the first payment under the original confirmed plan was due, unless the court, for cause, approves a longer period, but the court may not approve a period that expires after five years after such time.

So if you waited until the five years was up since the time your first payment was due, the trustee would not have any case.

Good luck