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Updated about 1 year ago on . Most recent reply

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Selling a house with capital gains while in chapter 13 repayment plan

Posted

If a seller decides to sell their property with possible capital gains due to their equity while still in chapter 13 repayment plan, how does it affect the proceeds? They are scheduled to have their last payment Nov this year. Anyone know how this works. I been researching online but haven't found a clear answer to this. 

I know they must have the sale approved by court first. Then they will have to pay off the plan early with the proceeds. The question is, do they pay what's left of their repayment plan? or the whole amount of debt they owe originally before the plan? What happens to the rest?

Thanks guys.

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