Purchase of home after filing

[arlington]

Is is possible to purchase a home a few years after filing a 13? I had plans to sell my current home and purchas a new one in 4 years. Is this possible after filing a 13? Also, is there is a profit from selling the house will I receive the money or will that go towards my 13 balance?

[JollyGG]

To sell your house you must first get permission from your trustee.
What happens then is you sell the house. 1. the mortage(s) get paid, 2. You get your exempt equity. 3. The trustee gets the rest to pay creditors. 4. If there is enough to pay all of your creditors in full, you will recieve anything left over.
Unfortunatelly right now it is unclear what percentage you would have to pay back 4 years after filing. Under old law after you had been in the plan for 3 years you could buy out of your plan at the percentages set up in the plan. Before three years to buy out had to be at 100%. It is unclear now if you will need to do 100% payback or not after three years under the current laws as no one has reached that three year point since the law changed.

[arlington]

Hi Jolly

Thanks for responding. Once I am done with the progam will I still have to contact the trustee?

[HHM]

Thanks for responding. Once I am done with the progam will I still have to contact the trustee?

Once your chapter 13 is discharged, you will not have to contact the trustee.

[lrprn]

Just be sure you tell your lawyer about your plans to sell before your plan is completed so that when it's time he/she can get your trustee's permission to sell your house while your Ch 13 is active.