Selling a house during chapter 13 - Florida

[Thingshappen]

Hello. What happens if we sell out house in Florida? We currently have over $200k equity in the house based on current market prices. The total amount is currently exempt in FL. But once we sell it (if), will the proceeds of the sale be no longer exempted, and the trustee will require to pay 100% of the claims? thanks.

[justbroke]

Of course you must have Trustee approval. You need to be careful with the proceeds because I don't think that Florida, like Arizona, has a statute which protects the proceeds of the sale of a homestead. I would think at a minimum, for Florida, you'd need to use the money to buy another home (within some period of time).

You really need legal advice on this because you could expose the $$$ to the bankruptcy estate. If it gets exposed, by losing the protection of the Florida unlimited homestead exemption, then the Trustee could try to use it to payoff all the unsecured creditors.

[Thingshappen]

Agree. We really need to be careful that we dont turn an exempted asset to a non exempted. That would be awful. I will touch bases with my attorney to see her point of view. In a different question JB, I havent really seen anything new for almost 3 weeks post 341 on Pacer (besides a new claim), does that typically mean that the trustee hasnt really reviewed my case? Or is it possible that he and my attorney are going through a negotiation process behind the scene?

[justbroke]

For a Florida Chapter 13, nothing really happens until 30 days post 341. At that time a "preliminary" confirmation hearing is held but simply continued (as part of Florida's rocket-docket). Your final confirmation hearing will likely be 90 days from that 341 meeting (or about 30 days after the last day to file a claim or complaint).

If there was a money issue -- plan needs to change -- the Trustee would likely have already filed something such as an objection to confirmation. But, since you're only 3 weeks from the 341 meeting, I'd say wait another week to see if the Chapter 13 Trustee has complaints.

[Thingshappen]

Ok. The POC deadline is in a couple of weeks. I am hoping and praying that some creditors dont file. One more question JB, we are still waiting for our 2021 tax refund. I filed on paper. This was included in the petition. I think my attorney told me that since it was included, I get to keep it. I guess that it is how it works? thanks a lot! You are super helpful!

[justbroke]

If your attorney exempted the anticipated refund, then you should be good to go!

[Thingshappen]

If your attorney exempted the anticipated refund, then you should be good to go!

Pardon my silly question, but how does the anticipated refund gets exempted? I know it was added to the calculation of the "total assets". Is there a place in the petition where you can see that?

[justbroke]

On Schedule C, your attorney would put something like "2021 Anticipated Refund" with an estimated value and then the section of the Florida Constitution or statute that grants the exemption (e.g. "F.S. 222.25(4) unused homestead exemption").

[Thingshappen]

Ok. I see the comment about 2021 anticipated refund but I do not see it down into the other section . Does that mean that I have to turn it over to the trustee when I receive it? When I filed, the attorney told me I get to keep the refund. I may need to reach out to him. I will be very disappointed since I was counting on it already.

[justbroke]

If there's a comment and your attorney told you that they exempted the refund, then you are okay. Usually your confirmation order would confirm this... but you are not yet confirmed. I would listen to what your attorney is telling you.

[Thingshappen]

I will save it and not spend it until I hear from her. Just in case. Thanks a lot JB!

[Thingshappen]

If there's a comment and your attorney told you that they exempted the refund, then you are okay. Usually your confirmation order would confirm this... but you are not yet confirmed. I would listen to what your attorney is telling you.

My attorney responded to my email today and stated that it was accounted in the plan. She said that the refund is mine to keep. I feel such a relief.

Thanks JB!