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Fritz, Attorney
Category: Bankruptcy Law
Satisfied Customers: 302
Experience:  Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases
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I have filed Chapter 13 and have 3 more years to pay my trustee

Customer Question

I have filed Chapter 13 and have 3 more years to pay my trustee back, which I have done without missing a payment. I am wanting to sell my home. My realtor confirmed there is nothing attached to my deed stating to contact anyone if the home is sold. Do I need to inform my trustee?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
While your Bankruptcy is in progress, all of your property is part of the Bankruptcy estate. Bankruptcy Stat. 541(a) & 1306(a).
This means you cannot sell your home without the approval of the Bankruptcy trustee.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Expert:  Fritz replied 5 years ago.

If there is any equity in the property, I would strongly advise NOT selling it while you're still in your Chapter 13 Plan, as any proceeds from the sale would likely end up going to your creditors. If you wait until after your discharge to sell, you will be much better off.

If you have no equity in the property and are trying to do a short sale, it will probably be okay, but like the previous poster mentioned, you DO need to inform the Trustee first and get a court order entered allowing you to sell the property. Also remember that you will need to file a Motion to Modify your Chapter 13 Plan if your mortgage payments were being paid through the Plan. Good luck!