Personal Bankruptcy selling our home that is NOT in our chapter 13 bankruptcy

[jeepguy]

we filed a chapter 13 two years ago, our home is "NOT" in the Bankruptcy. And to meet our budget (we are slowly getting behind on our house and don't want to lose it) we have to downsize our house Which means we have to sell it.
We are supposed to get permission from the court to sell it first. But what happens if we sell it without getting permission. ( We have a buyer for our house that is not willing to wait for the process)
thank you,
terrajeep@hotmail.com

 

[jeepguy]

We are located in Michigan

 

[army judge]

You would be very foolish to sell that house without informing the court.

By the way, you'd be committing a very severe federal crime!!!

Yes, the type of crime that sends people to prison.

I wouldn't risk it.


I suggest you speak with your lawyer.

You're committing another crime by concealing the home ownership from the federal bankruptcy court.

Big trouble is brewing, pal.

 

[fredrikklaw]

JEEPGUY:

You absolutely and positively should not even consider such a transaction while under the auspice of Bankruptcy Court and Bankruptcy Trustee as not only it would terminate your Chapter 13 proceedings immediately, it may also bring about some other unwanted and quite serious consequences.

First off, bankruptcy is conducted under Federal Bankruptcy Code which makes the process, laws, the forms, and whatnot the same throughout the nation regardless of your location.

But why would you even consider a covert sale of the property when the opposite could, give of course the value and sale price of the property, be of immense benefit to you in that it could help you pay off all eligible debts and be rid of the payroll deduction by getting a discharge. Start by submitting a Contract of Sale to put all concerned on notice of your intention to sell the property and then File with the Bankruptcy Court a Motion To Sell. This motion should outline the sale price, the property value and what you plan to do with the proceeds. The Bankruptcy Court will then consider your motion and if all is well issue an order authorizing the sale.

When the sale goes through, you will file a Statement of Sale with your trustee and if the proceeds from the sale is enough to pay your debts under the plan, the trustee will obtain an order discharging your Chapter 13 petition and cease any and all further payroll deductions.

So, it really is to your benefit to do this above board and with the full knowledge and blessing of the Bankruptcy Court, because the alternative could land you with a Bankruptcy Fraud charge.

fredrikklaw