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Sell house to pay 100%

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    Sell house to pay 100%

    I'm into my 4th month of my 13 and have found out that my house is now worth enough that if I sold it I would be able to pay all creditors 100%. I know I need to first have my case dismissed but is there any other fees that I need to be aware of to the trustee or anybody else. I'm only planning to sell because I'm separated and my wife doesn't want to ever move back into this house and there's just no reason for me to keep it (and maintain both mortgages). Renting would be so much cheaper for the short-term that I'm looking at.

    Or should I consider converting to a 7 and let everything run it's course. I don't want to lose the one vehicle that is currently included as 100% payback in the plan.
    John, Virginia
    Case Confirmed: 5/20/05
    Property Closing: 9/20/06
    Buy-out and Discharged: 9/27/06

    #2
    What percentage are you paying to your creditors under the plan. Why blow your equity on paying back creditors when are paying them through the plan.

    If you ultimately decide to go the route of selling your house, your better off selling as part of the chapter 13 and paying your creditors 100% in the chapter 13 and recieve a chapter 13 discharge, instead of simply dismissing your case and paying voluntarily.

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      #3
      Can you give me quick understanding as to what you mean by selling the house in the Chapter 13? I'm not clear as to how that would be done.
      John, Virginia
      Case Confirmed: 5/20/05
      Property Closing: 9/20/06
      Buy-out and Discharged: 9/27/06

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        #4
        If you sell significant property in the bankruptcy, you have to get permission from the court and trustee. If you decide to sell your house, you contact the trustee and find out how they work it, but they would have to consent to the sale. If your plan is to simply pay off your plan at 100% they won't object, and then its a simple motion that is made to the court to approve sale.

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