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Chapter 13 and I want to sell my house. Can I?

Armonk, NY |

I am considering filing chapter 13 but I might want to sell my house during the next five years. Is it possible to do so, how is it done, and what are the ramifications? Thank you.

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Attorney answers 6


You could file chapter 13 now to save the property and when you are ready to sell the house you could request that the case be dismissed, you might have finished the plan payments and received a discharge in less than five years or you might be able to modify the mortgage during the bankruptcy proceedings which also gives you options.


I am always concerned that bankruptcy is made to look like it is a pill you can take which will make your phone stop ringing, your mail box to be empty and your spouse to become happy again.

Bankruptcy (in my opinion) should be used if you have assets that are valuable and that are about to be lost to a creditor. If you want to use it to make the creditors go away, there are often better techniques. They all involve hiring a lawyer to interface with your creditors.

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You may also sell your home during the Chapter 13 case. However, you will want to examine the exemptions in your county in New York (there are different amounts for different counties). The Chapter 13 case can be a good way to take care of outstanding debts and sell the home. Please contact local counsel to explore the different options available to you.

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There is simply now way any attorney can advise you on what action you should take without knowing all the facts of your case including equity in all assets, all types of debts including taxes, etc. and why you are even thinking of a chapter 13 instead of a chapter 7.. I have filed over 5,400 petitions in 27 years and it is impossible to answer your question that way it is asked. So many issues affect our advice to you. But specifically you should want to know, can you discharge all your debts and can you keep equity in all the assets you own. But other issues affect our advice. As a result, there is ONLY ONE THING you should do not matter what I or anyone else advises you: Go employ an experienced bankruptcy attorney who has practices for many years in your area and handles both chapter 7 and 13 cases and listen to him or her..and then follow their advice. It is easy once we have the facts but that is way beyond the scope of AVVO as your information in our 26 page questionnaire all affect our advice to you! Good luck and find such may find one on AVVO possibly in your area now! Without suck knowledge, no one can tell you the ramifications, or options, etc. Thanks and I hope my answer assists you.


It is possible, but you will have to get permission of the court. If you come out of the deal with any money, they may grab it up.


Generally you can sell a house in a bankruptcy provided you have the court approve the broker and the sale. One would need more details to explain the ramifications of a sale upon your case. You should consult with experienced bankruptcy counsel in your area.