Home selling on Chapter 13

[QuietOne]

In Virginia - We are having trouble contacting our attorneys. We have filed for a dismissal. We already have offers on the house. We have knowledge of an unexpected cash flow coming and want to negotiate and settle with creditors.

This is the question: does the bankruptcy court actually put a lien or something on the title so that when a title search is done, it will show up and the sale will be impaired? Thanks.

[HHM]

No, there is no lien, but how far into the plan are you?

[QuietOne]

just three months -

between finding out about the $$ and the trouble with our attorneys; we saw no choice but this.

But the dismissal hasn't gone through yet (or at least we haven't been noticed of it's acceptance yet) and we wondering how the trustee finds out about the sale if it isn't through the title search. But the contract we want to accept is closing june 30, so hoepfully by then the dismissal will have occurred by then.

[HHM]

Even though you are having troubles with your attorney, you really need to talk to him about his, because there are many legal implications with dismissing a case.

As a general matter, its almost never a good idea to dismiss a chapter 13 and sell your house, from a pure economic standpoint, 9 times out of 10, it costs you more to dismiss early than completing the plan. Also, why would your creditors settle with you, they know you will have sold your house, have money, etc, (unless your intention is to pay them in full).

In due candor, this sounds like a bad idea, but to each his own.

[QuietOne]

We have no choice but to sell...my husband got terminated and has accepted a job 6 1/2 hours drive away, so we have to move.

I'd love to talk to the attorneys about our case; we have called them and written them and can't get them to give us any information or even to talk to us on the phone or to set up an appointment. Their receptionist fields their calls, and says it will be an additional charge to consult with them on the house thing. We had complained to the trustee, email and letter, but to no avail.

I work inside the law field so I'm not wary of lawyers as some people are; but I do know what I should be able to expect from them and this ain't it! Unfortunately, I had no experience in this area and did not personally know anyone, either layman or lawyer, whom I could turn to. So...

[HHM]

Well, if he lost his job, you have the option to convert to a chapter 7 and still recieve the benefit of discharging your debts. (the only caveat is that he does have a job waiting for him).

You do have other options, you can go to another attorney to see if they can help.