Can I sell my house after filing?

[d3a0s]

I am considering ch 7. We have about $12,000 equity in my home. Can I sell the home after filing and keep the money to put toward another home?

I live in Louisiana and between my wife and myself we will get a $15,000 exemption for our home. I just don't know anything about what you can legally do after filing.

(this is like a nightmare)

[HHM]

You can sell it after filing, but why would you? What you CAN'T do until after discharge (or dismissal) of your BK is buy a house. You cannot use any credit or take out new debt obligations during the pendency of your BK.

[d3a0s]

Thank you for replying

I apologize for my extreme ignorance of all of this. I know that selling the house doesn't seem reasonable, but our situation would probably take a page of explanation - lol.

So if I do sell after filing they can't take that money away from us? Even if it is before discharge?

[HHM]

Thank you for replying

I apologize for my extreme ignorance of all of this. I know that selling the house doesn't seem reasonable, but our situation would probably take a page of explanation - lol.

So if I do sell after filing they can't take that money away from us? Even if it is before discharge?

The best advice is wait until discharge to sell. Generally, they won't touch the equity if you sell your house before discharge, so long as you originally claimed the equity exemption in your BK schedules. Also, you may need to seek the courts permission to sell if you sell during the pendency of your BK. Because technically, the house is part of the BK estate until the Trustee releases the estates interest in the property (i.e. usually by discharge).

Are you behind on your mortgage payments? thus, creating the urgency to sell.

[Busted42]

I'm in the same situation

Should I contact the trustee and tell him that I am about to sell my home? Is there a chance that the courts will take away the money that I receive(about $13000)? I am not behind in payments, I've been trying to sell the home for about a year now and it appears that I will be selling it within a month or so.

[SinkingFast]

I am considering ch 7. We have about $12,000 equity in my home. Can I sell the home after filing and keep the money to put toward another home?

I live in Louisiana and between my wife and myself we will get a $15,000 exemption for our home. I just don't know anything about what you can legally do after filing.

(this is like a nightmare)

Should I contact the trustee and tell him that I am about to sell my home? Is there a chance that the courts will take away the money that I receive? I am not behind in payments, I've been trying to sell the home for a bout a year now and it appears that I will be selling it within a month or so.

Once you sell, you loose your homestead exemption. Except for a few states that say otherwise, you can only use a homestead exemption for a house you physically occupy. If you state's homestead exemption isn't worded to apply a portion or the whole amount otherwise, any monies you make from the sale of your house will become part of your estate. You'll have to check your state's exemptions. Your state may offer some other exemption that will allow you to cover part or all of the money.

As noted before, when you petition for BK, the Court/Trustee has control of your estate and everything in it. From your house and your cars to your underwear and socks. Any activity, such as sale of the house, would require you notify the Trustee and get the Trustee's approval before proceeding. You'll probably have to amend your petition as well if you do sell. Others will know better about that part. We haven't gotten to the actual filing stage yet. Still learning.