Quinton, VA asked in Bankruptcy for Virginia

Q: I am in Chapter 13, been in it for 2 years. I am selling my. home and moving out of state. Will i be able to keep any of

the proceeds? I am a 100% PT disabled veteran with a wife and kids.

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1 Lawyer Answer
W. J. Winterstein Jr.
W. J. Winterstein Jr.
PREMIUM
Answered
  • Bankruptcy Lawyer
  • Boyertown, PA

A: If your Ch. 13 plan has been confirmed, and I assume it has after 2 years, what you do with the assets you retained under your plan should not require an adjustment of the confirmed plan payments.

In my district, in eastern PA, the Ch. 13 trustee is proactive, and if a sale of the house is contemplated at the outset, it must be stated in the plan, and then there's an argument about use of the sale proceeds.

You're best advised to talk this through with your bankruptcy lawyer. Again, in my district, the amount of attorneys fees approved by the court around the time of plan confirmation covers future change-of-circumstances/modifications of plan, so you shouldn't need to pony up more fees.

None of my clients have moved out of state after confirming a plan, so I haven't looked at that issue. I do know that a bankruptcy case can be transferred to another federal district, so you should cover that with your bankruptcy attorney as well.

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