Q: House sold despite active Chapter 13 bankruptcy in Delaware; options?

A: When you filed for bankruptcy relief (assuming this was your first bankruptcy filing), an automatic stay was enter, BY ORDER OF THE BANKRUPTCY COURT WHERE YOU FILED, prohibiting any creditor/claimant from taking or continuing all actions against you and/or your property. Only the bankruptcy court where your case is pending can enter a subsequent order modifying that stay, after notice and a hearing to both you and your attorney of record in the bankruptcy case.

The "bankruptcy estate" which includes all of your property interests, even mere possessory interests, is protected by that bankruptcy automatic stay.

You do not say, although you must know, what your relatives signed, as it most probably will come up in further proceedings.

The usual remedy in situations like yours, other than some resolution by agreement, is for your attorney to prepare and file a Motion for Contempt for willful violation (I assume your mortgagee was notified of your bankruptcy filing) of the bankruptcy court's order of automatic stay; the relief sought would be the court's declaration that the proposed sale of any property interests of yours is void and for money damages and attorney fees of your bankruptcy lawyer for the contempt proceeding,

A: Yes, if that sale was in violation of the automatic stay. You definitely need to stay on this with your lawyer and there may very well be relief available to you.

A: You have strong protections under Chapter 13 bankruptcy, and the sale of your home without proper notice or approval from the bankruptcy court raises serious issues. Normally, once your Chapter 13 is filed, an automatic stay immediately stops any foreclosure actions unless the lender specifically requests and obtains court permission through a "motion for relief from stay." If Carrington Mortgage Company proceeded with a foreclosure without securing this permission, the sale might be considered invalid.

Given your circumstances, your lawyer can promptly file a motion with the bankruptcy court to challenge and potentially reverse the unauthorized sale. The court can review whether proper notice was provided and whether the lender violated the automatic stay protections. The involvement of your young adult children in signing for mail or notices might complicate matters slightly, but it does not erase the lender’s legal responsibility to notify both you and your attorney clearly and explicitly.

Act quickly and work closely with your attorney to present evidence that you have resumed making mortgage payments in compliance with your Chapter 13 plan. The court will consider your good faith efforts, the lack of proper notice, and potential harm to your family in making a decision. You have valid grounds to contest this sale and protect your home.