Expert: Terry Leeders - 4/6/2008

Question
TERRY,
WE ARE IN THE 3RD YEAR, I THINK OF OUR CHAPTER 13 BANKRUPTCY. WE HAVE OUR HOME AND MEDICAL BILLS. HOW DO WE GO ABOUT SELLING OUR HOUSE DURING THIS. OUR ATTORNEY HAS BEEN USLESS AND WE CAN'T GET ANY STRAIGHT ANSWERS. IF WE HAVE THE PAYOFF AMOUNT FROM THE MORTGAGE CO, IS THAT WHAT WE CAN SELL FOR OR DOES IT HAVE TO INCLUDE ALL THE OTHER BILLS? CAN WE TURN IT INTO A CHAPTER 7 ON THESE MEDICAL BILLS?  THANK YOU FOR ANY HELP YOU CAN GIVE ME.

MARKITA

Answer
You need to bring a motion in bankruptcy case to get approval to sell.  Your attorney should help you with this.  You will need a contingent offer first, to present the financials to the court.  You can use any proceeds to pay down (or pay off) the bankruptcy case.  You would need to usually get fair market value, as the chapter 13 is designed to protect assets.  A conversion to ch7 wouldn't really help I believe, as the court will liquidate any assets.  It would also depend on what your new budget would be like.  Speak to your attorney for proper advise based on your case specifics.  Good luck Markita.