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sale of residence in chapter 13
From the plan form itself:
VI. REVESTING OF PROPERTY
Property of the estate shall not revest in the Debtor until such time as a discharge is granted or the case is
dismissed or closed without discharge. Revestment shall be subject to all liens and encumbrances in existence
when the case was filed, except those liens avoided by court order or extinguished by operation of law. In the
event the case is converted to a case under chapter 7, 11, or 12 of the Bankruptcy Code, the property of the
estate shall vest in accordance with applicable law. After confirmation of the Plan, the chapter 13 trustee shall
have no further authority or fiduciary duty regarding use, sale, or refinance of property of the estate except to
respond to any motion for proposed use, sale, or refinance as required by the LBRs. Prior to any discharge or
dismissal, the Debtor must seek approval of the court to purchase, sell, or refinance real property.
*************************
Mark J. Markus
Law Office of Mark J. Markus
11684 Ventura Blvd. PMB #403
Studio City, CA 91604-2652
(818)509-1173 (818)509-1460 (fax)
web: http://www.bklaw.com/
Certified Bankruptcy Law Specialist--The State Bar of California Board of Legal Specialization
This Firm is a Qualified Federal Debt Relief Agency (see what this means at
The post was migrated from Yahoo.
I don't think the property revests on confirmation in the central district. Jon
>
> As long as he stays in 13 he should be OK. The exemptions are as of the
> day of the filing, and when a plan is confirmed the property revests in
> the Debtor. I don't see where this would change the liquidation
> analysis. Contrary views?
>
>
>
> Steven B. Lever
>
>
>
> Of sambenevento
> Sent: Monday, July 01, 2013 4:24 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] sale of residence in chapter 13
>
>
>
>
>
> Client wants to sell residence out of his chapter 13. He will net less
> than the full homestead allowance. It is in his best interest to stay in
> the 13 to pay off priority taxes and discharge a large unsecured debt
> and his new I/J will support the existing plan payment. Two questions:
> First, will he be allowed to retain the proceeds of sale even though he
> is relying on the automatic (not recorded) homestead? Second, assuming
> that he can retain the proceeds, must he reinvest within 6 months (he is
> older and does not want to buy again)? Judge is NB. I used to know this
> stuff - but the CA homestead is quirky! Thanks for the input.
>
The post was migrated from Yahoo.
Avanesian is correct. Jacobson has stated the reinvestment of the proceeds is part of the exemption. So, reinvest or lose the exemption. This will apply in 7, 13 and 11.
Jacobson said the exemption is fixed at the time of the filing, but the exemption includes the reinvestment requirement. Reinvest or lose the exemption.
d
Sent from my iPad
On Jul 18, 2013, at 1:58 PM, Michael Avanesian wrote:
> I'm am a novice in Chapter 13 land but there are two reasons not to pursue this course.
>
> First, you don't want to litigate this issue because it'll kill any equity you hoped to protect.
> Second, there is a chapter 7 case: In re Jacobson, 676 F. 3d 1193 - Court of Appeals, 9th Circuit 2012. I think the liquidation analysis changes once the property becomes nonexempt. I am not saying it's a merit less argument, I just think it's very complicated and probably not going to work.
>
>
> Sincerely,
> Michael Avanesian
> Law Offices of David A. Tilem
> www.tilemlaw.com
> 818-507-6000
>
>
> On Thu, Jul 18, 2013 at 11:48 AM, Steven B. Lever wrote:
>>
>> As long as he stays in 13 he should be OK. The exemptions are as of the day of the filing, and when a plan is confirmed the property revests in the Debtor. I dont see where this would change the liquidation analysis. Contrary views?
>>
>>
>>
>> Steven B. Lever
>>
>>
>>
f sambenevento
>> Sent: Monday, July 01, 2013 4:24 PM
>> To: cdcbaa@yahoogroups.com
>> Subject: [cdcbaa] sale of residence in chapter 13
>>
>>
>>
>>
>>
>> Client wants to sell residence out of his chapter 13. He will net less than the full homestead allowance. It is in his best interest to stay in the 13 to pay off priority taxes and discharge a large unsecured debt and his new I/J will support the existing plan payment. Two questions: First, will he be allowed to retain the proceeds of sale even though he is relying on the automatic (not recorded) homestead? Second, assuming that he can retain the proceeds, must he reinvest within 6 months (he is older and does not want to buy again)? Judge is NB. I used to know this stuff - but the CA homestead is quirky! Thanks for the input.
>>
>
>
The post was migrated from Yahoo.
I'm am a novice in Chapter 13 land but there are two reasons not to pursue
this course.
First, you don't want to litigate this issue because it'll kill any equity
you hoped to protect.
Second, there is a chapter 7 case: In re Jacobson, 676 F. 3d 1193 - Court
of Appeals, 9th Circuit 2012. I think the liquidation analysis changes once
the property becomes nonexempt. I am not saying it's a merit less argument,
I just think it's very complicated and probably not going to work.
Sincerely,
Michael Avanesian
Law Offices of David A. Tilem
www.tilemlaw.com
818-507-6000
On Thu, Jul 18, 2013 at 11:48 AM, Steven B. Lever wrote:
> **
>
>
> As long as he stays in 13 he should be OK. The exemptions are as of the
> day of the filing, and when a plan is confirmed the property revests in the
> Debtor. I dont see where this would change the liquidation analysis.
> Contrary views?****
>
> ** **
>
> Steven B. Lever ****
>
> ** **
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *sambenevento
> *Sent:* Monday, July 01, 2013 4:24 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] sale of residence in chapter 13****
>
> ** **
>
> ****
>
> Client wants to sell residence out of his chapter 13. He will net less
> than the full homestead allowance. It is in his best interest to stay in
> the 13 to pay off priority taxes and discharge a large unsecured debt and
> his new I/J will support the existing plan payment. Two questions: First,
> will he be allowed to retain the proceeds of sale even though he is relying
> on the automatic (not recorded) homestead? Second, assuming that he can
> retain the proceeds, must he reinvest within 6 months (he is older and does
> not want to buy again)? Judge is NB. I used to know this stuff - but the CA
> homestead is quirky! Thanks for the input.****
>
> ****
>
>
>
I'm am a novice in Chapter 13 land but there are two reasons not to pursue this course.First, you don't want to litigate this issue because it'll kill any equity you hoped to protect.
Second, there is a chapter 7 case:In re Jacobson, 676 F. 3d 1193 - Court of Appeals, 9th Circuit 2012. I think the liquidation analysis changes once the property becomes nonexempt. I am not saying it's amerit lessargument, I just think it's very complicated and probably not going to work.
Sincerely, Michael AvanesianLaw Offices of David A. Tilemwww.tilemlaw.com
818-507-6000
On Thu, Jul 18, 2013 at 11:48 AM, Steven B. Lever <sblever@leverlaw.com> wrote:
As long as he stays in 13 he should be OK. The exemptions are as of the day of the filing, and when a plan is confirmed the property revests in the Debtor. I dont see where this would change the liquidation analysis. Contrary views?
Steven B. Lever
From: cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of sambenevento
Sent: Monday, July 01, 2013 4:24 PMTo: cdcbaa@yahoogroups.comSubject: [cdcbaa] sale of residence in chapter 13
Client wants to sell residence out of his chapter 13. He will net less than the full homestead allowance. It is in his best interest to stay in the 13 to pay off priority taxes and discharge a large unsecured debt and his new I/J will support the existing plan payment. Two questions: First, will he be allowed to retain the proceeds of sale even though he is relying on the automatic (not recorded) homestead? Second, assuming that he can retain the proceeds, must he reinvest within 6 months (he is older and does not want to buy again)? Judge is NB. I used to know this stuff - but the CA homestead is quirky! Thanks for the input.
The post was migrated from Yahoo.
As long as he stays in 13 he should be OK. The exemptions are as of the
day of the filing, and when a plan is confirmed the property revests in
the Debtor. I don't see where this would change the liquidation
analysis. Contrary views?
Steven B. Lever
The post was migrated from Yahoo.
Proposed not passed.
Sent from my Stella Havkin's IPhone
On Jul 18, 2013, at 11:23 AM, "Joseph E. Caceres" wrote:
> Wasn't there some new law proposed (or maybe even passed) in California eliminating the 6 month reinvestment requirement?
>
> Sent from my iPhone
>
> On Jul 18, 2013, at 11:19 AM, "Link Schrader" wrote:
>
>>
>> Sam,
>>
>> I believe an exempted proceeds would need to be reinvested within 6 months of the sale to retain their exempt status. "New Issues With the Homestead Exemption" is the topic of this Saturday's CDCBAA event at Southwestern Law School. Hope to see you there.
>>
>> Link Schrader, Attorney
>>
>> Law Office of Link W. Schrader
>>
>> Mail: P.O. Box 3723, Tustin, CA 92781
>>
>> Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
>>
>> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
>>
>> San Diego: (619) 952-8342; Fax: (310) 878-4158
>>
>> www.schrader-law.com
>>
>> ______________________________________________________________________________________________________
>>
>> This communication and any files transmitted with it contain information which is confidential and may be privileged and exempt from disclosure under applicable law. It is intended solely for the use of the individual or intended recipient. You are hereby notified that any use, dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender. Thank you for your cooperation.
>>
>>
>>
>> On Wed, Jul 17, 2013 at 1:53 PM, sambenevento wrote:
>>>
>>> I am still trying to figure out if my client can sell his home out of his chapter 13 and keep the net proceeds - which are below his homestead allowance. He is over 65 and he claimed the automatic homestead under 704. He wants to stay in the 13 to payoff some priority tax debt while discharging a large unsecured debt. Does anyone know if he will he be required to reinvest within in 6 months or can he just bank the money?
>>>
>>
>>
>> Link Schrader, Attorney
>> Law Office of Link W. Schrader
>> Mail: P.O. Box 3723, Tustin, CA 92781
>> Office: 106 W. 4th Street, Suite #308, Santa Ana,
>> CA 92701
>> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
>> San Diego: (619) 952-8342; Fax: (310) 878-4158
>> www.schrader-law.com
>> ______________________________________________________________________________________________________
>> This communication and any files transmitted with it contain information which is confidential and may be privileged and exempt from disclosure under applicable law. It is intended solely for the use of the individual or intended recipient. You are hereby notified that any use, dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender. Thank you for your cooperation.
>>
>
>
The post was migrated from Yahoo.
Sam,
I believe an exempted proceeds would need to be reinvested within 6 months
of the sale to retain their exempt status. "New Issues With the Homestead
Exemption" is the topic of this Saturday's CDCBAA event at Southwestern Law
School. Hope to see you there.
*Link Schrader, Attorney*
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
San Diego: (619) 952-8342; Fax: (310) 878-4158
www.schrader-law.com
The post was migrated from Yahoo.
I am still trying to figure out if my client can sell his home out of his chapter 13 and keep the net proceeds - which are below his homestead allowance. He is over 65 and he claimed the automatic homestead under 704. He wants to stay in the 13 to payoff some priority tax debt while discharging a large unsecured debt. Does anyone know if he will he be required to reinvest within in 6 months or can he just bank the money?
The post was migrated from Yahoo.
Client wants to sell residence out of his chapter 13. He will net less than the full homestead allowance. It is in his best interest to stay in the 13 to pay off priority taxes and discharge a large unsecured debt and his new I/J will support the existing plan payment. Two questions: First, will he be allowed to retain the proceeds of sale even though he is relying on the automatic (not recorded) homestead? Second, assuming that he can retain the proceeds, must he reinvest within 6 months (he is older and does not want to buy again)? Judge is NB. I used to know this stuff - but the CA homestead is quirky! Thanks for the input.
The post was migrated from Yahoo.