Filed Motion to Sell...Trustee Filed Objection

[coosa17]

First of all, please don't ask me to contact my attorney, because I filed pro se. Plus, I've made it this far on my own. I just want to see if anyone else has experienced anything similar and what I should possibly be looking at.

Here's some history: My husband and I put our house up for sale this past March. I filed Ch 13 on my own back in April 2007. I didn't think that selling the house would be a problem with my bankruptcy since my husband is the only one on the loan and title.

Two days before we were to close, we find out that I needed the court approval to sell the house. Everything fell through at the last second. Both our buyers and the sellers on the house we want had no problem extending our contracts out 30 days. I had no idea that I needed to file the Motion to Sell before even thinking about even putting the house up for sale! I did hours and hours and hours of research, got the motion prepared, along with scheduling a hearing for any objections and sending out notices to all creditors. I got kudos for the forms I prepared and filed, so I know I did something right.

Yesterday (6/9) my Trustee filed an objection to the Motion to Sell, but only on the net proceeds being turned over to us after closing. He said there is no objection if we were to turn over funds to the Trustee to pay off my unsecured creditors. No problem...we knew to expect it. My original filing stated that we would use the proceeds for costs of living and savings OR turn the funds over to the Trustee to satisfy all outstanding debts. Obviously he chose the latter.

My question now is this: How do I respond to this objection? We totally expected to have to turn the funds over to the Trustee. Since the Trustee says there would be no objection to the sale if we turn over the net proceeds to him, how do I communicate this to him? Do I need to file another document of some sort? I can't find anything in the research I've been doing and have no idea what to do (if anything)! I can't possibly have this stall the closing of the house again for fear of losing our buyers and the loss of the home we are trying to buy. There are three other transactions holding on us getting the title clear on our house. I can't imagine having to tell these other parties that the closing will have to be delayed AGAIN.

Our new closing date is set for next Friday (6/20). We are hoping to have this resolved by then and any info would be greatly appreciated!

[Flamingo]

First, I commend you for doing good for so long with filing a Chapter 13. That is a lot to take on; however, your experience is a good one for most to see the stuff that can happen and how complicated it can get. Someone on here might be able to help you that has maybe run into the same thing but it is not very common. If no one responds, I suggest calling the Clerk of the BK Court and see what needs to be done next. Some Clerks can be very helpful.

[danaf]

Why not just call your trustee and tell him you agree with what he wants and how can this be expedited so you can close as planned? He shouldn't have a problem with this type of communication plus he will probably make more $$$ off your 13 on it.

[workinghard]

This is from nolo.com: "Typically, one party submits a written motion to the court, at which point the other party has the opportunity to file a written response."

Based on the above, it would follow if you are agreeing to his terms then that is what should be spelled out in the response.

And the clerk's office may offer suggestion or at least refer you to pro-se legal helpers make sure it's in the proper format on the proper forms etc...

perhaps this site will help you:

http://www.pro-selaw.org/pro-selaw/court.asp

[MajorMike]

I just give you credit for having the courage to file a 13 pro se......would scare the bejesus out of me!

[aa06a47]

Contact the trustee's office and see if you can keep at least your states exemption. Then file an answer to the motion to what you and the trustee agree too. You will have to file an answer.

[coosa17]

I have an update!

I called my Trustee and asked how I could let him know that we are agreeable to handing over funds for the creditors and what should we do from here. I got a call back from the staff attorney and she advised me of what I need to do. She said that the Trustee is only objecting to us keeping all the money, not to us keeping the money after he's taken out what I need to pay the creditors. Our net proceeds on the sale should be around $20K...remaining payoff balance in plan is around $8K. I first had to write a letter requesting a payoff balance (this will be tied into the closing paperwork and allow the Trustee funds to be held aside). I have to then wait for the time to run out on the motion to send the proposed Order to the Trustee for approval. He will sign it and forward to the Judge for signatures too. We'll be on our way to selling our house and getting it closed next Friday!

I can file the Order with the Trustee this coming Monday. That gives us 4 days before closing to get it all fixed up. The Trustee's office is aware that we need to get it done and will help expedite the process.

Thanks for any help and suggestions you guys provided!

[PoorGrammyinBK7]

You are so smart and so courageous! I admire you very much!!!!

[MajorMike]

Very impressed!!!!!! Way to go!!!

[jgarton244]

You may want to ask if there is any issues with buying the new home. Although you will be paying of your plan with funds from your sale, your BK plan is not dismissed or closed for a fewmonths after the final payment. We paid our last payment in December and the BK 13 plan was not officially closed until June. I do not know if you need trustee's permission to acquire new debt on the new home and new mortgage. Your mortgage company may want a letter from the trustee allowing the new mortgage. Hate to see you sell your home, and then get stuck in closing on new home due to technical issues. Kind of a gray area, as you will have plan paid off, but will not be officially out from BK plan until final audit is completed by trustee, and court dismisses and closes the plan.