Moving out of state in an active Chapter 13

[Redsox]

Hello All,

There is an opportunity for me to move to another state for a new job. I am in active Chapter 13 in AZ and have 2 years to go. My income and bills will be about the same. Can I move and continue to make payments to the AZ Trustee even though I now live in another state or do they have to transfer the case? Thanks for your help.

[toojerm]

You can live anywhere you want, and your case will stay in the same district. I relocated from WA to IA in 2011. The only snag is not being able to sell or refi my home, forcing me to rent it at a loss. Notify the trustee of your new employer and they will contact HR to set up the wage garnishments. Good luck in your new job.

[Redsox]

In AZ they don't garnish wages. I am sure you can petition the court to sell your home. It may differ in other states. Thanks for your response.

[despritfreya]

Red,

You are free to move where ever you wish. If you have an attny you need to let him/her know your new address. If you do not have an attny you need to file a Change of Address with the Court and send a copy to your Trustee. You can find the form here:

http://www.azb.uscourts.gov/default.aspx?PID=73

It's the 3rd one down the list.

Des.

[Redsox]

Des, am I correct that in AZ you can sell your home with court approval?

[ccmisery]

Just be sure you can get a place to live, I am hearing a lot of negatives on being able to rent due to a bankruptcy.

[despritfreya]

Des, am I correct that in AZ you can sell your home with court approval?

If you have a Confirmed Plan, unless the Order Confirming states otherwise, property of the estate vests back to you. You are free to sell the home without a court order. However, the title company will most likely want a court order. If you had/have an attny and he/she was smart enough, there will be language in the Order Confirming that specifically states you are “free to transfer, sell, refinance or otherwise dispose of property, including the homestead residence, without further Order of the Court” (or something similar). Such language is the court order a title company may require.

If you find a buyer I would recommend using First American Title for the closing. While the attorney who directed the legal department at FAT and taught it how to deal with bks has retired, I assume his good teachings took hold and FAT still understands the ins and outs of the impact a bk may have upon selling property.

The sales price MUST cover all liens and encumbrances. If you try to do a short sale, forget it - just modify the Plan to surrender and walk away (but for the HOA until the property is foreclosed).

Des.