He said that our state exemption is $25000. I told him that we owe $155000 and that our house was valued at $189000 he said that would not be a problem. I questioned him on this and he said that the trustee would have to go though way too much work for that small of amount. Does this sound right?
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It depends, but your attorney would have more perspective on your local trustee's willingness to go through the process. The small amount he is referring to is $9,000. You get to keep that $25,000 equity, and the trustee gets the $9,000. Also, your house may not sell for $189,000 at a liquidation sale, so he is probably right, it wouldn't be worth the effort.
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