Whether you’re in the middle of your Chapter 13 case or years into your repayment plan, notify your attorney once you know that you intend to sell your home. There is a great deal of paperwork involved in selling a home while you’re in Chapter 13, and your attorney needs time to inform your bankruptcy trustee and put the documentation together. In addition, you should inform your real estate agent and the prospective buyer that you are in Chapter 13. It’s likely your attorney will draft language into the sale agreement that the sale is contingent upon the trustee’s approval.
Time is of the essence if you’re in the middle of your bankruptcy case, or if the trustee has not approved your plan. Give your attorney anywhere from 30 to 45 days to negotiate the sale with your trustee. Your attorney will need time to put the paperwork in motion. In addition, your creditors have a right to object to the sale, just as they have a right to object to your repayment plan.
If the home’s sale can pay off your repayment plan, then you can expect a discharge of your Chapter 13 shortly after the sale. The trustee will order the discharge, which will be signed by a bankruptcy judge and sent to you in the form of a final decree. This document is important to keep, as it proves you are out of bankruptcy.
Its gets complicated. Trustees can sell homes and other avenues it can go. States homestead exemptions and so much more. BK lawyer will be best bet for a more in depth on how it will work with moving to another state. Where you file. What will the equity will be in a couple yrs. There's a lot to it.