Call Now
(916) 780-7005
Click Here
Free Case Analysis
MENU
  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Selling Or Buying A Car Or Home During Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, in addition to having a court-appointed trustee make payments to creditors on your behalf, the court will need to approve new loans in excess of $1,000.00.

In our experience, the two items that raise the most questions are cars and homes. What if your car stops working and you need a new one? What if you have a lease agreement that ends before your case does? How do you get out of your current vehicle and into a new one? What if want to refinance or sell your home? What about buying a home? These situations will likely require the approval of the court if you are seeking to take on new debt in excess of $1,000.00.

Getting Started – Talk to your Bankruptcy Attorney

Before you pursue these options, please contact your bankruptcy attorney. They will tell you if there are any problems with a potential motion to the court that would result in its failure. For instance, if a potential car or home loan would have a greater monthly payment than your current residence; this may cause the court concern. There are other reasons why a motion might fail, but before you waste any time working out an agreement please contact your attorney to discuss your intentions so they may weigh in and provide advice.

Timing– Finding a Compatible Party

If your attorney tells you that you can file a motion to approve an agreement, another pitfall that people run into is timing. Until a court approves your motion, you cannot finalize the new loan. For instance, if you wish to buy a new car, it takes a minimum notice of 28 days for the court to hear the motion. Motions for refinancing homes or selling a residence require 35 days minimum notice. Other varieties of motions go out even further, up to 45 days. Moreover, court dates typically take place once every two weeks, so it is not necessarily true that a date will be available within the exact minimum notice period. Once a court approves your proposed agreement, it may also take several more days for an order to be issued.

When negotiating terms with a buyer or lender, you should keep them appraised of your situation and let them know that the terms of your agreement must match exactly with those approved by the court and will need the appropriate notice period for an order granting approval of the terms. Any renegotiations will likely result in another motion being necessary and the timeline for approval will reset. Careful negotiation of terms is advised since revisions can result in a party backing away and the agreement falling through.

If you have questions about the bankruptcy process reach out to your Modesto bankruptcy attorney at (707) 385-0422.

Categorized in: