How soon can you sell your house if it was not included in a chapter 13?

Answer 1

One can normally sell a house as soon as they want after the Order of No Asset is issued by the Court, but most people wait until after the Discharge is entered and the case is closed to be safe. One word of caution though: I had a potential client come in to my office once (a couple of years ago) and he had filed a Chapter 7 with another attorney, and the case successfully received Discharge. Then, 2 years later, he sold a house that he had owned during his bankruptcy. Apparently he had indicated in his bankruptcy petition that the house was worth $100,000.00 or so, then he sold it 2 years later for $250,000.00. Somehow the trustee of his bankruptcy case got wind of this sale and reopened the case and filed an Adversary Proceeding against the guy, alleging that he misrepresented the value of the home during his bankruptcy case. So, I would say it is wise to be sure the home's value was accurately reflected in the bankruptcy schedules prior to selling the home!

Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

Answer 2

All major financial transactions such as selling or refinancing property must be cleared by the trustee in charge of the chapter 13 bankruptcy. Failure to follow prescribed procedures can result in the dismissal of the BK and perhaps other penalties.

Answer 3

What would you mean not included in your bankruptcy?

You don't pick and choose what is effected by your BK....everything you owe and everything you own is included...some debts may be exempt from being discharged and some assets exempt from seizure...but they are included.

Failing to report everything properly will normally mean the dismissal of the BK action and being prosecuted criminally for fraud.