Trustee approval time for mortgage

[davidson]

I am trying to buy a house. It’s been one year since I filled a chapter 13 and have been approved by a lender to get a mortgage. My lawyer filled the motion to incur debt today it’s only fifty dollars more than my rent. Does anyone know how long or short it can take for the trustee to approve it ?

[justbroke]

Welcome to BKForum!

I can't say specifically because I don't know specifics of the procedure. If your attorney already worked with the Chapter 13 Trustee and this Motion to Incur Debt is only a formality, then it could take up to 30 days (even with negative noticing).

If the Chapter 13 Trustee already agrees with the motion, your attorney may have filed an agreed or joint motion where the motion indicates that the Trustee already agrees with the new debt. Whether or not that still needs to go to a hearing -- to notify creditors -- is more of the procedure that I just don't know.

If the Chapter 13 Trustee doesn't agree with the motion, then it will go to a hearing. The hearing is usually at least 3 weeks from the filing of the motion (and maybe a few days more for mail delivery allowances). At the hearing, the Trustee and your attorney could argue as to why it should or should not be approved. The court would decide whether to allow you to incur the debt, based on the facts presented.

I never had to do one while in my Chapter 13. I generally say, though, for any motion that requires a hearing, it's usually at least 30 days before there's an order granting the motion. It could take longer if the hearing is continued for unknown reasons.

[flashoflight]

Your lawyer has to file the motion to incur debt. The goal is to get the judge to sign it without anybody requesting a hearing. You have to give 17 days notice for the trustee or any of your creditors to object and request a hearing. Assuming nobody requests a hearing, the lawyer will docket the motion to be signed by the judge. That could take anywhere from a day to three weeks or even more. It's not proper to poke the judge to sign it quicker, but perhaps the lawyer can poke the judge's clerk for help if it's taking too long. Mine took almost 30 days from motion filing to the judge's signing. It could have been a lot longer. The other thing I would suggest is to refrain from locking the mortgage until just before closing. Locks, lock extensions, and worst case pricing cost a lot of money and the 15-day locks are a lot cheaper. Rates may go against you but that's the cost of doing business via chapter 13.

[davidson]

The 27th last month was the last day for anyone to object. I called the court main number and they said it has not been approved by the judge yet. I’m a little worried I will loose my earnest money.

[despritfreya]

While procedure will vary by district, in general, once the deadline to object passes, your attorney would file a Certificate of No Objection and submit an Order approving the Motion to the judge. The judge then signs the Order but that could take a few days.

Contact your attorney to check on completing the process.

Des.

[davidson]

My attorney is not answering my calls or emails. In the courts website I see their doing chapter 13 dockets on this coming up Wednesday. I didn’t see my name on the list . My lawyer supposedly emailed the clerk of court on Monday and their was no response. The last I talked to on the main phone said she emailed the court deputy and their was no response. I think they all left early today for the long weekend. I am going to try and call another attorney and see if he could tell me how this specific court works / timelines

[justbroke]

If, as @desprifreya mentioned, this court will do this on negative noticing (no one objected), then the wait is on the judge themself. I think that your lawyer emailed the clerk (or judge's courtroom deputy), to get the proposed order in front of the judge so that the judge signs it. They typically sign this types of orders outside open court. They do these type of orders in chambers, so to speak.

Unfortunately, can't rush the judge and you don't want to get the judge's courtroom deputy... upset.

[flashoflight]

The 27th last month was the last day for anyone to object. I called the court main number and they said it has not been approved by the judge yet. I’m a little worried I will loose my earnest money.

See my previous response. You've only waited 7 days so far. It can be a lot longer like 10-21 days. Your lawyer didn't warn you about this? Mine did.

[davidson]

Mine didn’t warn me

[justbroke]

Mine didn’t warn me

It is nearly standard practice that this type of motion requires more than 21 days and probably 30 days (if it's done with negative noticing). It's also possible that it could go to a hearing as well, extending the time period. However, it does read as though the Chapter 13 Trustee is okay with the new debt, but the other creditors still get time to respond. That's at least 21 days + at least 3 days for mailing.

As despritfreya wrote, after the time has expired for an objection, then the attorney will usually file a proposed order granting the motion and then contacts the courtroom deputy. The courtroom deputy would then get the judge to sign the proposed order. This takes time. From what I experienced, many of the judges have scheduled chambers time where they deal with signing different types of orders. This also takes time.

Hopefully the courtroom deputy has it in front of the judge and it's just sitting in a big pile of things. (Noting that the pile is electronic and the signature is electronically placed on the document.)

(Sample timeline: Washington State is apparently 24 days + 3 days for mailing as a minimum before the attorney can seek the judges signature without a hearing. Texas may be only 10 days (+ 3 days for mailing) negative noticing with Chapter 13 Trustee permission.)

[davidson]

Okay I’m in Texas. So close of business on the 13th he files the motion. Than nobody objected the deadline was the 27th for objections. So it sounds like I am basically waiting on the judge now. They probably could have done it on Friday but I am confident the court people left early for the weekend

[TamBam]

I’m nervous because the judge approved mine but I offered and was accepted for a house 25k more than the order. I just know the judge will deny it.

[davidson]

How long did yours take to get approved

[davidson]

How did you get your order without getting the offer first. Your lawyer sounds better than mine lol

[TamBam]

How long did yours take to get approved

Less than a week.