I am going through a chapter 13. If I choose to sell my home what happens to the equity in my home who gets it?

N0help4u

From the little I remember from my paralegal classes on bankruptcy I don't think that is a good idea.

George_1950

Your state elects whether to set its own equity limit, or follow that set in the bankruptcy code. You can keep the sum that you are entitled to, just make certain that you claimed this in your original filing concerning "exempt property". If you are married, your spouse can exempt and retain the same amount as provided by law.

Fr_Chuck

Basicly first the court has to approve the sale, since you are in the chapter 13 that goes on for many years. It as any change in income has to be reported. You have state specific exemptions where you are allowed certain amounts of cash ( remember once sold it is now cash not property exemption) the court uses the amount over the exemption max to pey on the bills.