Dangers for dismissing Chapter 13 case to sell property

Asked 7 months ago - South San Francisco, CA

I want to sell my property to pay off my debts. I filed for chapter 7 in 2013 which wiped my debts, then filed for chapter 13 for my other debts that could not be included in the chapter 7 (i.e. HOA debt). I am currently in chapter 13 and have 2 liens on my property (HOA and minimal child support). If I were to request a motion to dismiss, will I be susceptible to other dangers since I am no longer protected by chapter 13 (i.e. HOA lawyer or chapter 7 trustee selling my home without my consent)? The total debt in my chapter 13 is about $20k
HOA - $11K
Child Support - $2K
Car - $5K
Lawyer fees - $2k

Attorney answers (6)

  1. Lauren Ann Rode

    Contributor Level 12

    9

    Lawyers agree

    Answered . Chapter 13 is a voluntary process so you can request dismissal of your case. The real danger is your HOA possible filing a Notice of Trustee Sale and moving your property to foreclosure. This, of course, takes time. You may be able to dismiss and sell the property before the HOA spends the time and energy moving your home to foreclosure; but it is a risk. Also, in order to sell your home, the liens on the property will need to be taken care of before escrow can close on the property. If the Chapter 7 trustee was going to try to sell your home he would have done that during your Chapter 7. Now that it is closed, the Chapter 7 Trustee cannot appear and take over selling the home. Hope this helps.

  2. Stuart Gregory Steingraber

    Contributor Level 18

    5

    Lawyers agree

    Answered . You have the right to dismiss your 13, but, as pointed out by others, there may be adverse consequences. What does your lawyer recommend?

    You are not my client and I am not your attorney. This advice is given in the spirit of the AVVO platform and is... more
  3. Malcolm Wallace Ruthven

    Contributor Level 15

    4

    Lawyers agree

    Answered . Attorney Lauren Ann Rode gave you a very good answer. I'm here to say that you should be posing your questions to your own bankruptcy attorney; I presume you have one because a Chapter 13 is quite complex to prepare and file property.

    This reply does not constitute legal advice or establish an attorney-client relationship.
  4. David Eli Larson

    Pro

    Contributor Level 15

    4

    Lawyers agree

    Answered . You may be able to stay in the ch 13 and sell the home. If you don't have a lawyer to talk to in person about this, see the link below to NACBA for help in finding a bankruptcy lawyer near you.

  5. Brent J Jensen

    Contributor Level 13

    3

    Lawyers agree

    Answered . This is a question you need to address with your bankruptcy attorney. Any advice given here is based solely on the facts you present. About 99% of the time there are additional facts that will change the answer. See your attorney.

    This is not legal advice and I am not your attorney until you retain my office. Always consult with an attorney in... more
  6. Paul Elliot Ross

    Pro

    Contributor Level 9

    1

    Lawyer agrees

    Answered . I concur with our fellow colleagues, that you do need to confer immediately with your chapter 13 attorney, and see if you have a hazard. Your real estate equity must obviously now be able to cover your listed debts or you wouldn't even be considering it. Your schedules in your chapter 7 and chapter 13 however could potentially give your chapter 7 trustee a grounds for re-opening your case if you had alleged just a year ago negative equity.

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