Selling home 14 months in plan

[n2stay]

Any idea of what will happen? I am currently waiting for approval from the trustees/court to sell my home with a payout after closing costs around 27,000 the payoff for my ch 13 is 15,000 whats the chance any of the proceeds will be delivered to me out of the sale? And will the homestead exemption (10,000/NC) be equity in my pocket?

[HHM]

It depends on what your unsecured creditors are entitled too? When there is a sale of a house in a chapter 13, the trustee is looking to grab enough to pay your creditors at 100%.

[n2stay]

homestead

Thanks HHM! That really sucks Anyone know about the homestead exemption is that still mine for the taking?

[HHM]

Yes, it should be.

[QuietOne]

Our experience...

we had to sell due to my husband's job loss and our relocation for his new job.

This is our deal: we made $63,000.00 on the house after everything was paid. Our plan called for us to pay back $27,000.00. That was about 33% of what we owed. They gave us $10,000.00 ($5,000.00 for each of us) and kept the rest. That did NOT pay off the CH13. They just added that in as income and kept it, and we still have to pay the $27,000 over three years.

And don't think you can rook the system...the title company will not release the home until they get an OK from the trustee/court.

So, my advice is this...if you are thinking Ch13, and you have a house with equity in it...then sell the house and make deals with creditors. Our major, unsecured creditors had been ready to accept 33 cents on the dollar and my husband was afriad to do it. But if we had, we would have pocketed $40,000.00 instead. Please don't ask me what he was afraid of because I don't know. So now here we are, no house, no money, and we still have 2 1/2 years to pay into the plan.

[fiats3]

What? Why didn't you rent out the house?

we had to sell due to my husband's job loss and our relocation for his new job.

This is our deal: we made $63,000.00 on the house after everything was paid. Our plan called for us to pay back $27,000.00. That was about 33% of what we owed. They gave us $10,000.00 ($5,000.00 for each of us) and kept the rest. That did NOT pay off the CH13. They just added that in as income and kept it, and we still have to pay the $27,000 over three years.

And don't think you can rook the system...the title company will not release the home until they get an OK from the trustee/court.

So, my advice is this...if you are thinking Ch13, and you have a house with equity in it...then sell the house and make deals with creditors. Our major, unsecured creditors had been ready to accept 33 cents on the dollar and my husband was afriad to do it. But if we had, we would have pocketed $40,000.00 instead. Please don't ask me what he was afraid of because I don't know. So now here we are, no house, no money, and we still have 2 1/2 years to pay into the plan.

I'm basically in the same boat. I did a pro se Chap7 and never realized I had to file a homestead deed as well. The trustee then objected to my exemption and I was afraid he'd fo for a property valuation and uncover more equity (which I'm sure there is more, the house is very desirable location). So, I converted to a Chap13 and dumped that trustee. But I'm not sure my plan will be confirmed. I hope so. But that means I will have to sit on it for 5 years with no ability to borrow or sell. That's way too long for me. I would've discharged $100K in unsecured debt by now if I'd only filed the form. I'm thinking of renting or leasing the house out to cover the mortgage and move and rent in some other state. I hate Virginia now. My question to you is why didn't you lease it, or rent it out...? At least then the equity would've been preserved, I know you need the money but $10k doesn't go far....