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All sales would be subject to court approval.
So, first, the sale must be for fair market value
fair market value would raise his payment
is expert still typing
yes one moment
if sold for FMV, that is fine
The debtor can then rent from the family member sure.
if there is a change in the budget, then the ch13 plan repayment can be modified accordingly, especially if taking arrears out of the plan etc.
Do you have any questions?
buying the property for fmv may be problem. to me it does not seem fair, the difference between loan payoff and fmv would go towards chapter 13 balance correct
most of the time, correct
The debtor can ask to keep the exempt funds though.
if there is a homestead exemption
he is making full payment direct to the lender and making trustee payments on everything else, so i dont see why the proceeds from homestead would go pay revolving debt etc.
Because the case is designed to pay back enough debts to cover unexempt assets. When those unexempt assets are liquidated, the proceeds go to the creditors as adequate protection under the code. Unfortunately, it's just the way it is. If the debtor is paying 100% of the unsecured debts, then the debtor might be able to keep the proceeds, if asked on the motion to sell.
so he couldnt pay it off either then, i supplied the money.
the mortgage or the bankruptcy?
You can pay it off, sure
refinancing is subject to court approval too
how would that affect the 13
Usually nothing, unless the payment changes.
if the mortgage payment decreases, the trustee could ask for a bump up in the bankruptcy payment
if it goes up, the debtor can modify the plan too
ok you have shed some light, let me get with the lawyer, thanks bro
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