I am currently 1.6 years (60 Month plan) into my Chapter 13. I am struggling each month to make all the payments. House, Trustee, expenses. 3 Kids and wife. I would like to downsize and sell our house, but do not understand the process. What would happen to the profit from the sale of house? Would any (Bank) be willing to finaince a smaller mortage. I know there has to be someone out there that is faced with the same situation, your advice would be greatly appreciated.
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I didn't go through a chapter 13. But I imagine any profit will be taken to pay down the debt you owe. I hope things work out for you. I am sure some other people will be here to comment. -
Despite the tightness of our budget, I have opted to stay in my home, which I could downsize, with this reasoning. Hopefully it is sound.
If I could sell my house and if I could finance a smaller, cheaper house (and those are huge ifs), with the smaller mortgage payment my chapter 13 payments would increase, leaving me with no net improvement in my situation.
By staying in my house, upon discharge, I should hopefully have substantial equity in my house, to then make a large down payment when I do downsize.
In other words, I would rather pay more to my mortgage and a build up of equity, than pay more into my chapter 13.Comment
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