Selling your home while in CH13

[confused1]

I am a newbie here to the forum and need some advice from some of you more experienced ppl. First a little history about me: I currently reside in Burlington, NC. I kicked my husband out of the house and filed Ch13 in order to not lose the house car and everything else I worked hard for and he drank away. At the time I was working a full time job making $39000 a year and a part time job that made $4000+ a year and child support. I wound up having a hysterectomy and was out of work for 8 wks but struggled thru it. Then all of a sudden I lost my full time job in May where I was up to almost $40000 a year and now draw unemployment of $400 per week. I cant work extra hours at the part time job because it will lessen my unemployment benefits. Stuck between a rock and a hard place here. I am struggling to make my $1360 a month payments and pay all other expenses.

I have met a wonderful man and our relationship is moving forward in a positive direction. Any way, we are talking about moving in together in another city (Durham, NC). But I have to wait for my son to graduate HS (early) before I can make the move. Is it better for me to sell my house...or given my current situation should I look more into converting to a chapter 7? What happens when I do convert to a 7? If I sell the house...what happens to all my other debt...would I be considered to be making too much money then to remain in bankruptcy? I am hoping to find a job soon but know I will not find something making the money I was making previously. Any suggestions?

Thanks a bunch!

[lrprn]

I am a newbie here to the forum and need some advice from some of you more experienced ppl. First a little history about me: I currently reside in Burlington, NC. I kicked my husband out of the house and filed Ch13 in order to not lose the house car and everything else I worked hard for and he drank away. At the time I was working a full time job making $39000 a year and a part time job that made $4000+ a year and child support. I wound up having a hysterectomy and was out of work for 8 wks but struggled thru it. Then all of a sudden I lost my full time job in May where I was up to almost $40000 a year and now draw unemployment of $400 per week. I cant work extra hours at the part time job because it will lessen my unemployment benefits. Stuck between a rock and a hard place here. I am struggling to make my $1360 a month payments and pay all other expenses.

I have met a wonderful man and our relationship is moving forward in a positive direction. Any way, we are talking about moving in together in another city (Durham, NC). But I have to wait for my son to graduate HS (early) before I can make the move. Is it better for me to sell my house...or given my current situation should I look more into converting to a chapter 7? What happens when I do convert to a 7? If I sell the house...what happens to all my other debt...would I be considered to be making too much money then to remain in bankruptcy? I am hoping to find a job soon but know I will not find something making the money I was making previously. Any suggestions?

Thanks a bunch!

First, congratulations on your new promising relationship! Now...with your job loss, you can't possibly be making your monthly payments to the trustee. Are you behind on your trustee payments?

Have you contacted your lawyer to let him/her know that your income has changed so drastically? Definitely investigate filing Ch 7, especially before moving in with your new beau or making any permanent legal connection (i.e. marriage) that can complicate your financial picture.

If you file Ch 7, do you want to keep the house? If you want to sell, since you're in Ch 13, you must have the trustee's permission to put the house on the market.

Hope this helps a bit.

[CATCHMEIFYOUCAN]

When you sell your house, with permission of the trustee, I THINK (but I don't know for sure), any profit (extra money) goes to the creditors??? I don't have any assets (especially a house), but that is what I heard somehwhere, forgive me if I'm wrong.

Catchmeifyoucan

[confused1]

I have been making my monthly payments but i am beginning to struggle big time! I have called my attorney to let them know and even contacted the trustee with no sympathy. I am not late on my payments but not sure how much longer I can continue to do this!

I do not want to keep the house if/when I convert to Ch7 that is why I am asking about selling the house. I had originally planned to move after my son graduated HS because there is nothing here for me. My oldest is in the military and is not planning on coming back here to live afterwards.

I keep thinking that Ch7 will be the better option and I am ready to be able to start fresh and get my life going again.

Can being in bankruptcy hinder me from getting a job? I know its not supposed to but could it be possible that once the see that on my record that they may put my on the back burner ??

Yes I know that any profits would go to the court..but if it pays off the house and one or two other debts...what happens to the rest? Can I stay in bankruptcy for the next two years cause then I know I wouldnt be qualified for a Chapter 7 due to too much money? Thinking maybe I need to just consider chapter 7 and be done with it.

Thanks for all your help!

[lrprn]

See my answers to your questions below...

I have been making my monthly payments but i am beginning to struggle big time! I have called my attorney to let them know and even contacted the trustee with no sympathy. I am not late on my payments but not sure how much longer I can continue to do this!

It's good you aren't late with your trustee payments at this point. Do whatever you have to do to keep those current until you can decide about Ch 7.

I keep thinking that Ch7 will be the better option and I am ready to be able to start fresh and get my life going again.

If you have lost your job and have no immediate potential of getting another in the next few weeks, then Ch 7 does seem like the best option in your situation.

Can being in bankruptcy hinder me from getting a job? I know its not supposed to but could it be possible that once the see that on my record that they may put my on the back burner ??

This answer depends on two things - the type of job you are applying for and how the potential employer feels about bk. Although it is against the law to discriminate against someone solely for filing bk, it's easy to manufacture other acceptable reasons to not hire you if that's what the company really wants to do. However, there are members here who have found good employment during Ch 13 bk or right after filing Ch 7, so there's always hope. Some employers don't pull credit reports, so if you are hoping to hire on there, unless you tell them, they have no way of knowing about your bk.

Yes I know that any profits would go to the court..but if it pays off the house and one or two other debts...what happens to the rest? Too many possibilities here that depend on your specific case. This is a question to ask your lawyer. Can I stay in bankruptcy for the next two years cause then I know I wouldnt be qualified for a Chapter 7 due to too much money? You have no choice about the number of years you stay in bankruptcy - in Ch 13 it's either 3 years or 5 years which typically is decided on whether you are above or below your state's median income when you file. Now if you have enough house equity to buy your way out after a certain number of years, that's a possibility. However with a house lien, that makes an early buy out a lot more complicated. Thinking maybe I need to just consider chapter 7 and be done with it. Yes, that does seem like the best option for you to pursue given your current circumstances.