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  1. #1
    Join Date
    Apr 2012
    Posts
    4

    Default Trustee Approval Before Selling Car Paid Outside of Chapter 13 Plan

    My question involves bankruptcy in the state of: Virginia

    Do I have to get trustee approval before selling my car being paid outside of my Chapter 13 plan? My cost of living has gone up considerably compared to my raises and cannot afford a $385/mo car payment. I just want to sell the car and borrow one from a relative and pocket the $4K or $5K cash I'll end up with after I payoff the loan from the proceeds of the sale. I need this $5K to pay post-petition HOA fees anyway that I owe since my BK atty screwed up and told me to stop paying them!!! AAAUUUGHHH!!!!

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Trustee Approval Before Selling Car Paid Outside of Chapter 13 Plan

    If your Plan has been confirmed and there is language in the Order confirming that states, something like, "property of the estate vests in the debtor upon confirmation of the Plan", generally, yes you can sell the property without approval from anyone. However, you really need to discuss this with your attny (even if you have issues with him) to be sure you can sell the car. If the vesting language is not in the Order confirming then you would need Court approval to sell the car.

    If your Plan has not been confirmed then the answer is. . . You would have to get Court approval to sell property of the estate.

    Des.

  3. #3
    Join Date
    Apr 2012
    Posts
    4

    Default Re: Trustee Approval Before Selling Car Paid Outside of Chapter 13 Plan

    Thanks! My order confirming does not have that language but says I must send notice and complete disclosure of the terms before selling property valued in excess of $5,000. If I owe $11K to VW Credit and sell it for $16K max, I will net at most $5K. If my value in the car is $5K, do I still have to send notice to the trustee?

  4. #4
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Trustee Approval Before Selling Car Paid Outside of Chapter 13 Plan

    Quote Quoting morrdba
    View Post
    Thanks! My order confirming does not have that language but says I must send notice and complete disclosure of the terms before selling property valued in excess of $5,000. If I owe $11K to VW Credit and sell it for $16K max, I will net at most $5K. If my value in the car is $5K, do I still have to send notice to the trustee?
    Yes you must comply with the Order. Value is not your "equity" in the asset, it is what the asset is worth.

    Des.

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