MasConcepts Incorporated

Chapter 13 plan confirmed Nov of 2024. Paying 32%.

Father passed away in Feb 2025. Small estate, no probate. I received $50k in life insurance, which was reported but was not required to be turned over to the case per attorney (he reached out the trustee to verify).

Here’s my confusing situation (I WILL be talking to my attorney, but would love some insight in the mean time):

My dad had a house/property of which was worth very little. The house was a hoarder house and should’ve honestly been condemned. He owed $130k on the property. As such, the foreclosure proceedings were well under way. My sister and I (the heirs) were told during a consult with a probate lawyer to just let the house go into foreclosure since we had no interest in the property. No will designating the house goes to us.

Fast forward to Nov of this year – my dad’s neighbors wanted to buy the house/property outright with cash (pay off existing mortgage + taxes + closing costs + interest + $10k (to be split between sister and I) for our time I guess.

We closed on the house last week and each received a check for $5k. Now, I fully anticipate turning this over to trustee, but I had a stomach churning realization after the fact that it’s possible I’m not aware of some bankruptcy rule or law or something similar about me selling a house during Ch 13. The title company did all the leg work and said they frequently deal with home transfers in this situation (sister and i’s name not on mortgage, nor did we assume the mortgage under either of our names) but because we were the legal heirs, we could “sell” or transfer the property?

Should I be concerned that the Trustee will look further into this? Again, my name wasn’t on the mortgage, I never assumed the mortgage, and the foreclosure being finalized was weeks away and home had negative equity based on condition.