Sell home now or after chapter 7

[deanrusk]

I have about 40000 in equity.I live in WA state.Can anyone help?Thanks.

[HHM]

If you sell your home before filing, what are you going to do with the money?

Unless you are going to immediately turn around and buy another home with the equity, the money will not be exempt from the BK trustee taking it. It's generally better to wait until after your BK is discharged to sell.

[deanrusk]

In WA the exemption for real estate is 40000.How could a trustee take money that is exempt?

[HHM]

Once you "liquidate" (i.e. turn the equity into cash by selling your home) the equity, generally, is no longer home equity and thus no longer subject to the home equity exemption.

Thus, its generally better to sell after your BK is discharged.