One final post, I promise.

[abouttofile]

If you are in ch 13 and have to sell your house to move out of state for a job do you get to keep the state exemption amount. Meaning if the proceeds from the sale are less than the exemption do you get to keep it all? Most of the proceeds I would be using to set myself up in the new state (massive security deposits for apt and utilities due to crummy credit)

[justbroke]

If you are in ch 13 and have to sell your house to move out of state for a job do you get to keep the state exemption amount. Meaning if the proceeds from the sale are less than the exemption do you get to keep it all? Most of the proceeds I would be using to set myself up in the new state (massive security deposits for apt and utilities due to crummy credit)

My initial gut read of this is... it depends on what State you are in. Florida has an unlimited homestead exemption, so that's pretty cool.

In other States, like Oregon, the Trustee would only keep what's above the homestead amount and distribute it to the unsecured creditors (that have allowed claims) up to 100%. Any excess over your homestead and paying the unsecured creditors (that have allowed claims) would be given back to you. This seems to work in Texas and Massachusetts as well. However, it is also suggested (and from the 9th Circuit) that the homestead equity is only protected for a certain period of time, and that it must be reinvested in property... a... yep... a new homestead.

It also seems that proceeds from the sale of the homestead would have to go into another homestead (new property). Otherwise, it could be exposed to the Trustee for distribution.

The other downside is, that since you won't have a housing payment anymore, the Trustee would require a new Plan with the old housing payment gone. This could increase your % to unsecured creditors as well.

Well, that's all I know. I thought about this myself. I was thinking of moving. (I don't have any equity, but I was thinking maybe in 2-3 years into Plan.) There are really three strategies. First, just let the Trustee take what they want. Second, exert the homestead exemption and move the proceeds to another homestead within some period of time (one year?). Or, third, a voluntary dismissal.

None seem right.