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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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If we file a chapter 13 and we are scheduled at $1175.00 a

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If we file a chapter 13 and we are scheduled at $1175.00 a mnth, then we sell are home that we kept and we get $80,000 in equity. What happens to the money.
Hi JACustomer,
If your home is sold, will it be sold with the intention of using the money to purchase another home?
Customer: replied 5 years ago.
It could be if that would save the money or to use it to pay the $1175 a mnth banctruptcy off. We are trying to figure out the options.

Last question:

Is your plan paying your unsecured creditors 100%? If not, approximately how much of your unsecured debt is being discharged, rather than paid?

Customer: replied 5 years ago.
about 280,000 is being discharged and a pay back of abour 60,000

Once you sell your home, the sale proceeds will be exempt (protected) only if there is an intention to purchase another home within a reasonable amount of time.
If your intention is to instead pay off or down your Chapter 13 plan instead of purchasing another home, you will lose this exemption, and will then forfeit the $80,000 without having it applied to your plan payments. In other words, the $80,000 will not reduce your payments, and it would therefore not be a good idea to sell your home unless you are planning on purchasing another one right away.

 

I think this is what you wanted to know. If not, please let me know.
Thank you!

 

 

 

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