Chapter 13 home sale question/ situation

[Blcountry]

Hey everyone thanks for reading. Question on my 13 case. I’m just over 2 and a half years in and all payments are current. I want to sell my house and move into my girlfriends home. I have an older home and have been stressed with the low amount of disposable income allowed if something were needed to be repaired on the home.

I understand my expenses would be less, but would I be able to claim any help that I provide with her mortgage payment/ utilities? Also I am not in an 100% plan, but if I sell my home and it’s more than enough to pay off the remaining balance of the chapter 13 case does it change to an 100% plan? My percentage is 28 currently so it would pay off that amount but not 100%.

I have an appt with my attorney but just want to see if anyone else went through a similar experience.

[flashoflight]

Selling your house does not give you any relief in the chapter 13 unless the sale gives you 100%.

Paying off the 28% balance isn't a valid concept in chapter 13 and gives you absolutely zero benefit or payment relief by itself. 28% is the estimated dividend to creditors only if you maintain your income/expenses at current levels and don't have any windfalls like a house sale or increased income. The dividend can be raised from 28% to any other higher amount up to 100% as windfalls come in. As long as you fail to pay 100%, you have to keep contributing to the 13 to the max disposable income possible. Most trustees will try to increase your payment to the maximum possible given the story you've given so far although you should be able to deduct your share of the mortgage and utilities up to the limits in your county. My guess is you will be just as strapped for disposable income as before.

I personally wouldn't do it. Just pray nothing major breaks during the 13 and then sell afterwards. You don't benefit from selling today.

[Barbisi]

Hi, Blcountry, as a recently discharged BK13 debtor who sold their house to an investor in May and moved from Colorado to Washington, my advice is also to wait until your discharge.
If you do, as we did, you will reap 100% of the proceeds and you will not have to turn over enough to change your 28% plan into a 100% plan.
My understanding is during the active BK13 any monies obtained must go towards fulfilling your creditor obligations first and then only your guaranteed homestead amount is yours to keep and re-invest in another house within 6 months of the home sale.
My questions are: Can you go ahead and keep paying the mortgage until your discharge and sell your home then? Is it becoming unlivable now? (Our house was starting to develop serious heating issues, among many other ageing -related woes, with a 30-year-old furnace, that barely creaked by until final discharge. (We owned an older (1975) home that we couldn't repair or update for five years, one that came to feel like a slumlord rental before we unloaded it on an investor and walked away with more money than we could have gotten through basic painting, recarpeting and new appliances.) I hope your house is not in a similar condition now.
Good luck on whatever course of action you take.

[justbroke]

This boils down my response (which would have been ten pages long).

My guess is you will be just as strapped for disposable income as before.

[Blcountry]

Thanks everyone. Exactly what I was wondering before going to talk to the attorney