selling a home in bankruptcy
i am currently in chapter 13, and have been for 18 months. i have another 18 months before the bankruptcy is due to be paid off. we would like to move, my question is, can we sell our house prior to the end of our 3 years we were to pay on the bankruptcy without having to give up our equity? if not when the three years is up and we sell are we going to be forced to give up our equity?
Answered on: 5/11/04, 9:33 am by Michael Dover
Re: selling a home in bankruptcy
Yes, you can sell, but you must file a motion to approve the sale with the bankruptcy court. You may also need to modify your plan. The proceeds from the sale of your homestead are exempt under Texas law, at least for 6 months after the sale. If you reinvest the proceeds in a new homestead within 6 months after the sale, there is no question that the proceeds and new homestead are exempt. If you do not reinvest the proceeds in a new homestead within 6 months, some trustees have taken the position that the funds cease to be exempt.
If you complete your plan, the trustee has no claim to any of your assets.
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Michael A. Dover, PC 1405 Vontress Dr., Suite 1101 Plano, TX 75074► Other answers from this attorney