Indiana old law chapter 13 - HELP

[Bernie]

We are 19 months in to a 36 month chapter 13. We are current on our home and our vehicles. Our 2nd mortgage was included in our plan. My problem is this: My husband may have to relocate to another state for his job.
Question #1 - Are we allowed to sell the house with the 2nd being included in the plan?
Question #2 - If we cant sell the house, we cant afford 2 housing amounts, so what happens then?
Question #3 - If my husband is given a lump sum of money to relocate, can we opt to pay off our bankruptcy plan? If so, how do we determine the amount we would need to pay off to determine if what he would get would be enough to even try to pay it off.

Thanks for any help.

[lrprn]

Question #1 - Are we allowed to sell the house with the 2nd being included in the plan?

If your trustee gives you permission to try, yes.

Question #2 - If we cant sell the house, we cant afford 2 housing amounts, so what happens then?

Assuming you didn't reaffirm either of your home mortgages, here's two possibilities to consider:

1. If your house is worth enough to pay off both loans if you can sell it, your husband finds a low cost rental in his new location while you stay behind trying to sell the house. His new employer may be willing to put him up in extended housing somewhere for six months - some larger companies understand how difficult it is to sell a house in this current market and offer extra help when employees relocate. Rarely some even offer to buy your old house!

2. You can walk away from your current house and allow it to foreclose. With the market the way it is in most areas of the nation right now, you are likely to find a nice house to rent where your husband is transferring until you can build up enough downpayment and enough time has passed to enter the housing market again once your Ch 13 is over and you get decent rates again.

Question #3 - If my husband is given a lump sum of money to relocate, can we opt to pay off our bankruptcy plan? If so, how do we determine the amount we would need to pay off to determine if what he would get would be enough to even try to pay it off.

As I recall, old law Ch 13 allows a payout after two years of payments, although it really depends on the trustee and your circumstances. To find out what your payoff amount is right now, ask your Ch 13 lawyer to contact your trustee and request a payout figure.

Hope everything works out for your family. Keep us posted on what you decide to do, and remember we're here for venting or sharing whenever you need it!