Can I sell my house?

[cynbkrpt]

I am ready to file for bankruptcy. I am also separated and will be filing for divorce in Sept 08 (as allowed in NC after 1 year separation). We have a home with some equity and I am the only one filing. NC is a tenancy by entirety state, from what I understand.

My question is this. When in this process can we sell our house? After filing but before discharge if my share of the equity is within the exemption amount? I plan to file within 2 weeks and need to move out of town in 4 months with the proceeds from the sale for my new home.

Any insight would be helpful. Thank you!

[cynbkrpt]

Also wondering if I sold it first, then filed BK if the proceeds would be seized if it was less than the Homestead Exemption. Thank you.

[HHM]

I hope your real estate market is good, selling a home in 4 months is wishful thinking in most parts of the country.

Nevertheless, you will want to sell it AFTER you file.

[cynbkrpt]

(Knock on wood) Houses in my neighborhood are still holding steady/rising slightly. A comparable house down the road sold last month for a price per sq ft that would give us about 30,000 net after the sale.

You said wait until after I file. But would I have to wait until after the discharge?

[PaKettle]

If you are able to keep your home through your bankruptcy, then yes, sell it well after your discharge. But if your home is worth $30k can you keep it? (Just asking.)
This is definitely something important enough to run by a couple of bankruptcy attorneys. Have you spoken with a few attorneys for consultations yet?

[cynbkrpt]

Thank you for your reply. We have about 30000 in equity..deed in both our names, mortgage only in spouse's. As we're about to divorce, we have to sell. I also need to move out of state so staying in the house is not an option even if I could get a mortgage (which I can't).

I will get a consultation with an attorney. I was just trying to figure out what to expect. I had hoped to avoid BK but I am being sued and have so much debt, even my share of the equity won't help to pay it off.

Thanks again!

[millerc507]

Check with an atty, but . . .

I believe that since you are the only one filing, assuming that the debt is solely in your name, the trustee cannot go after the equity in the home because of the joint tenancy status in NC. We ran into a similar situation here in NC but our atty. mistakenly listed our debt as joint when it was all individual--either myself or my husband but not both. The judge would not allow us to amend our petition even after changing atty's. Side note. . .If you are in the Raleigh NC area, be careful with the big lawyer who advertises all over the TV here. We got into a mess because of lawyer error and have had to switch lawyers.