selling home while in bk 13

[msldystrkr]

I have searched for this answer but have not found it...

I decided to sell my home a few months ago and asked my attorney what I should do and she said when I sell to send her the contract and as long as I was paying off the bk there would be no problem...

Well 2 big problems have come up!

I sold on Nov 4 and sent the paperwork immediately to her. She calls today and says she can not get a court hearing until Dec 1. Closing scheduled for Nov 28. This is throwing off everything and I do not know what to do. Both realtors, the new buyer and the seller of the new house I am purchasing are having hissy fits about the delay and say all the numbers and paperwork will have to change....

The other is the mortgage payoff. The mortgage company wants payment in full that includes the BK-13 amount and I am being told the BK-13 will have to be paid in full meaning I will have to pay the past due mortgage amounts 2 times...

HELP!!

Thanks

[Anonymous]

Not really. Paid in full is paid in full.

You have your set amount that is the payoff.

I guess I don't know why the court date must be done before closing. Someone can budge a bit here somewhere. it's only THREE F**KING DAYS!!!

[msldystrkr]

I don't know why there has to be a court date at all since I am paying off the plan. I guess I would understand if my 3 creditors were NOT getting their full payment but they are...

As for the mortgage - I am told I ahve to pay twice - once to the mortgage directly and once to the BK court for the amount still in bk and the mortgage company will refund any overpayment within 90 days - this is over $7000.... I don't trust this!

Yes someone should be able to give with it being only 3 days but everyone is still having a hissy fit..... Let the attorney's work it out!

[LadynRed]

First of all, you need the Trustee's permission to sell assets of the estate !! Did your lawyer get it ?? If not, you could have another problem and that may be what the deal is with the court date - Trustee had no idea what you were doing.

The payoff of the BK would come from whatever profits you get from the sale. I would think you'd be able to delay payment to the court until after the sale goes thru - which SHOULD pay off the mortgage, right ? - and then you can send the profits from the sale to the court to pay off the BK. Things are never carved in stone, the Trustee may be willing to negotiate so you don't have the double-whammy.

[msldystrkr]

Thanks for your reply!

I don't know what the trustee knew BUT my attorney knew what I was doing.

The profitts from the sale are $60,000 more than all the payoffs so there is plenty of money.

My understanding is that the court date is needed to get approval to sell the house and pay off the bk. So because of this closing is held up for a few days...

It would seem to me as common sense that the court would be doing it's best to speed this up so the debts can be paid, not risk the sale for a 2 minute hearing to slap the spproval seal on it. Another waste of time and most importantly taxpayer money!!!

[willingtocope]

Not absolutely sure about this, but doesn't the trustee get a piece of the action in a BK 13? Won't s/he take part of your $60k?

[msldystrkr]

Most bk-13's are filed with creditors not getting their full share - not my case. I only have 3 creditors - mortgage, judgment and small IRS tax bill. All 3 are scheduled to be paid in full so that is not a problem. AND all 3 need to get paid to clear title to the property. None of this is a problem.

The problem is the approval that I don't understand when you ar ein fact paying all bills...

[willingtocope]

Well, like I said, I think the trustee needs to get his pound of flesh. That could be the hang up...

[LadynRed]

The "approval' is necessary because ALL of your property became the bankruptcy estate which is literally controlled by the Trustee. You cannot dispose of assets of that estate w/o permission of the Trustee who administers that estate.

[msldystrkr]

UPDATE! Piece of cake... just time consuming and paperwork.

Attorney filed for a a fast hearing and was granted one the day after scheduled closing for 10 am. Attorney advised to schedule closing for same day later in the afternoon. Went to hearing at 10 am, judge approved the sale. My attorney showed the judge the payoff statement from the mortgage that included the back payments that they were demanding. judge then pointed to 2 attorney's present for other cases and told them that since they represented this mrotgage company on other cases to have their client dismiss their claim in the BK 13 so I could close on my house that afternoon. Apparently all paperwork was filed on time because I closed that afternoon...

So if anyone is involved in BK 13 the process is simple and quick!

thanks everyone...