Legal Question in Bankruptcy in Illinois

Retired parents chapter 13 & home problem

My in very poor health retired parents filed chapter 13 without advice first. They now need to sell their house and move to florida for their health etc. They can get $185K for their IL home but owe 85K for the mortgage and 100K for the chapter 13 and then they will have no home and no money. Can they possibly sell their home to me their daughter in WA for the mortgage balance? I in return sell the home myself and give them the 100K to allow them a small home in florida. Could this possibly work somehow, we are desperate about their situation.


Asked on 10/10/03, 1:26 pm

1 Answer from Attorneys
Thaddeus Hunt Law Offices of Thaddeus Hunt

Re: Retired parents chapter 13 & home problem

In order to sell a house while in Chapter 13, the Debtors or their attorney need to make a motion before the bankruptcy court to ask for permission to sell the home. The court will look to see if the mortgage company and anyone else with a lien on the home will be paid off through the sale. If done correctly, a judge will normally give permission for the sale.

As for the othe $100,000 in debt outside the bankruptycy, I would need to know what type of debt this encompasses. It is possible to sell the house and pay off the mortgage holder and maybe convert the case to a chapter 7 to get rid of the remaining debt without havin to pay back a portion of it.

If you would like to provide me with additional details pleae email me at [email protected] or telephone my office at 312-236-9906.

Good Luck,

Thaddeus J. Hunt, Esq.

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Answered on 10/11/03, 8:25 am


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