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Home > Money & Services > Bankruptcy & Debt   »   home equity and bankruptcy court

 
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Old Jan 21, 2007, 02:20 PM
justeenlesko
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home equity and bankruptcy court

i filed a chapter 13, 19 months ago. now i'm selling my house, which was not included in the matter, nor is their any leins against the house. can the bankruptcy court take any of the equity money from the sell of this house?

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Old Jan 21, 2007, 02:34 PM   #2  
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Yes if you are under a chapter 13 and change any situation that effects your money they have to be notified. The idea is that Chapter 13 puts you on a tight budget to follow, and that you don't have any additional funds to pay the lenders. I will assume you are not paying everyone off at 100 percent but paying non secured debtors basicly pennies on the dollar.

So they will re-look at your money situation. Also if you are selling your house where are you going to live, rent ? if so, then you also have to refile your budget to include rent that was not in it before and not I will also assume your housepayment, if your rent is going to be less than the housepayment, they may also want more per month on the payments.

Any situation required court approval and they will need to be notified of this change.
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