Motion to TurnOver my home to have it sold to ex husband's friend to benefit ex

[CoBelle]

Anyone ever have an objection that your plan shouldn't be confirmed becauseyour home should be sold because it benefits the creditors (ex and his attorney) more than if you successfully complete your Chapter 13 plan? [11 U.S.C. 543 (a)]


IF the house is sold in this not-at -arms length transaction, I wouldn't even get my homestead exemption as the family court wouldn't stop to validate the invalid judgment liens (put on the house by ex and his attorney against fam court orders).
My plan includes keeping the house as I'm allowed to buy out ex-s share per state court orders and the buyout will cost less than the cost of renting. Plus, if I then improve the property, I can sell it for twice the friend's offer and thus pay off my debts. As it is my only nonexempt asset, if the house is sold, I have no way to pay off unsecureds (and ex will be the major unsecured tho he seems not to know it)
If for some reason my 13 isn't confirmed, shouldn't I have the right to convert to a 7, as the house is my only asset, and let the 7 Trustee sell the house in an open market instead of to ex's friend?

[despritfreya]

CB,

In response to:

"If for some reason my 13 isn't confirmed, shouldn't I have the right to convert to a 7, as the house is my only asset, and let the 7 Trustee sell the house in an open market instead of to ex's friend?"

If you qualified for a 7 you have the right to convert, pre or post confirmation. However, do not expect the 7 Trustee to get in the middle of your fight.

Once converted you lose any control you thought you had. The 7 Trustee will quickly liquidate non exempt assets if, in his best judgment, he deems it to be beneficial to the estate. Yes, it will be an "auction" subject to higher and better offers but the Trustee will take what ever offer produces cash "today" not tomorrow or the next day. As a result the asset will be sold relatively quickly and most likely below what you consider true market value.

Des.

[CoBelle]

Oh I understand that, Des. I'm happy as a clam to be in a 13, paying my debt as much as my DMI allows, repairing my house so that it can be sold BY ME for as much money as possible, even though that gain will be subject to debt repayment.

A 7 doens't suit my purposes as I can't discharge the debt that I can discharge in a 13. Plus, losing control of the house.

But in the event the court actually considers turning it back over to the Receiver to sell to ex's 'friend', I'd rather do a 7 and let the trustee decide the house's fate. (Since I know someone who would pay 50k more than the current offer, I think the trustee would decide to keep it in the estate and liquidate.)

Now that bad fam court judge is GONE, I might still have some options (injunction) available if it does go back to district court, but since filing already trashed my credit which was excellent before, I think that finishing the bk, whether by 13 or 7, is the way to go.