Can I claim this under the Homestead exemption?

[karenp]

We are in the process of filing for bankruptcy. We haven't filed the paperwork yet, but willin the next month or 2. We have our house up for sale and have a possible buyer. After closing fees, paying off the current martgage, and real estate agent fees, we would have about $6,000 left. We plan on using this toward a down payment for a house in the city where we currently live. Can we count this towards our homestead exemption? If not, we have $6,000 in wildcard exemptions, can we count some of it towards that and not lose it all?

Thank you for you help with this,
Karen P.

[karenp]

Can anyone answer?

[worriedbk7]

I am not 100% sure, but if I were you...I wouldn't sell the house until after you file. It is my understanding that any $ you aquire after filing date is yours. (unless it is the lottery or inheritance) Maybe HHM or Todd could be more accurate???

[HHM]

I am not sure about the wildcard exemption issues, but I would assume it could apply.

There are two things your can do
1. Sell your house, buy the new place, THEN file BK (assuming you can hold out that long)
2. File BK, then sell your house (preferably after discharge)...

Its hard to give you solid advice on this since there is regional variations in exemptions and how they work, so you should talk to an attorney in your area.