hello all, I filed chapter 7 in feb 2006 we were discharged june 2006. If I sold my house and after paying 1st and 2nd mortgages off I might have 20-30 left over. could I purchase another house using that as my downpayment without it being questioned by the trustee? Thanks
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The Law on "windfalls" is 180 days from filing. You should be safe if your proceeds from the sale are in excess of your allowable Homestead Exemption.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Hi SinkingFast!
Does that vary from state to state? I could have sworn my Lawyer told me I had to worry about windfalls that might occur within one year of my discharge, not the filing date?
I'm curious as I'm about to sell the land my home used to be on.Comment
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http://www.law.cornell.edu/uscode/ht...1----000-.html
In this case, the house was part of the BK Estate until the 180 days past. If they had sold within the 180 days, the Trustee could have taken any profit, above their allowable Homestead Exemption for the benefit of their Creditors.
The 1 year time period generally refers to re-examining a BK Case due to suspected Fraud.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Interesting! Thank you so much SinkingFast! That is good news for me!
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Yup. It takes a couple months to sell anyways, so by the time you close would be early 07 and the 6 months would already have passed.Comment
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