Bankruptcy

[seanmick]

I was told that even though I filed bankruptcy, I could still sell my house and give all profits to the court, but my monthly bankruptcy payment won't change???? Is this true??? Why??? I want to get out of my house but I cannot afford to pay on the bankruptcy and a new place to live, shouldn't they deduct the amount of the house payment out of the bankruptcy payment?

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[tomterm8]

The costs of the place you rent will be included in your budget, so might reduce the amount you pay monthly.

However, any beneficial interest you have in the property became part of the bankruptcy estate at the moment you were declared bankrupt; it will pay off your creditors / OR, and only anything surplus to that necessary to pay your debts will be returned to you.

[42man]

As Tom has said (you have to give the OR your monthly budget) anything else outside of your normal day to day living costs might be taken by the trustee in your bankruptcy, As for the sale of your house you would be allowed to sell it (if the trustee gives you permission) but only if it is likely that you would pay all your creditors off + the trustee appointed by the Official Receiver (the trustee takes around 20% as a fee of the total debt which has to be put into the debt 'pot' also).......

If you have children the trustee doesn't always order the sale of your house. And if he/she did it wouldn't be for at least 12 months.