Sale Of Home During Chapter 13
Filed chapter 13 one year ago and kept the house. What happens if we move and have to sell home? Does all the money go to creditors? Do we get to keep any of the profit? Expect to get about $25,000 profit. Would it make sense to convert to Chapter 7 at that point (can you?)
Answer:
It depends on the details of your case. Generally, you have to obtain court approval for the sale, and tell the court how the proceeds will be applied. It is often proposed that the balance due under the Chapter 13 be paid to the trustee, with the debtor receiving the rest. Speak with your attorney for more details.
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