If I have Filed a Chapter 13, can I Still Sell My Home?

As an experienced Chapter 13 legal firm, Clark & Washington is fully knowledgeable of the US Bankruptcy laws and stipulations which are involved when filing any case in a federal bankruptcy court. We field dozens of questions everyday from individuals who are looking for relief from their financial stress. One of those questions is can you sell your home even if you have filed your Chapter 13 in bankruptcy court and it has been approved? The answer to this question is “yes,” you can sell your home.

However, be aware of the fact that the judge who tried your case must give you the permission to do so. This is due to the fact that selling your home and property will change your personal financial picture and will impact your Chapter 13 reorganization and repayment plan. Clark & Washington is experienced and well versed in the filing of motions to sell house and property.

The following information is typically included in the motion as well as all relative documents and other paperwork:

• Information regarding the proceeds you receive – when the sale on your home and property has closed, will you be walking away with payment in hand?
• What are you designating the money for if you receive proceeds from the sale?
• Your new household budget after the sale and closing of your home – it is presumed that your living expenses will change when you find another place to live.

Occasionally, your Clark & Washington attorney will have to negotiate a new deal with the bankruptcy trustee and you may have to apply a portion of the sale proceeds to your plan. However, it is not a hard and fast rule that this will apply to your situation. Just realize that you may have to give up a portion of your sale proceeds.

Additionally, if you are planning on using the sale proceeds to purchase another home and use the proceeds for your down payment, as well as paying for the moving expenses that you may incur, Clark & Washington will have to obtain the bankruptcy judge’s consent to do. So another motion to do adjust your Chapter 13 repayment plan will have to be filed. If you need assistance in this matter, feel free to call us at (407) 898-0299. Or you can fill out the confidential contact form found on this website.