Means test/ sold home

[joebob]

If you sold a home in the window of the 6 months means test period do they count any profit as income.

[jal1129]

No, it would not be counted as income but it would be an asset. When you file they do ask about selling of property within the past year. So depending on the amount of profit if you are not able to exempt it then the trustee would probably take it. Someone who knows more about this will probably come along.

[SamanthaJones]

Please quote some resources that indicate real estate profit is not income.

I'm anxious to read where that information comes from.

[DeadManCrawling]

I'm anxious to read where that information comes from.

This depends on state or federal exemptions. I live in Florida, and my understanding is I could sell my home before during or after BK and they simply couldn't consider the value of the equity, to an unlimited value-even MILLIONS-not as INCOME, not as an asset. It is COMPLETELY exempt from all consideration, as though it simply did not exist. I could sell my home for $5 million, and it would not be considered in a BK case concerning $5000 even if my Five MILLION was entirely PROFIT. Expemptions vary by state, and Florida (along with Texas) is the best place for this circumstance. However, most states have a cap on equity that can be protected. Where are you? That MIGHT be the place to start, keeping in mind, that Florida is for that reason, considered a debtors haven

[SamanthaJones]

You failed to specify that the 'house' was your homestead.

Right on, that the ungodly state of FloriDUH does do one thing right- the nice homestead exemption. Alas? One right can't correct a thousand other wrongs. I'd take the money and RUN, baby!