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Filing in GA - how strict are trustees w/ equity?

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    Filing in GA - how strict are trustees w/ equity?

    Planning to file ch 7 in GA in about 3 months individually and not w/ my husband; I am on the deed to our house but husband is only one on mortgage. I'm worried about our house...we really want to keep it but our equity will probably be around $5000 to $10,000. Does the trustee care that only my husband is on the mortgage...will this come into play at all?

    I've been told to do various things...get an appraiser that will give me a super low appraisal and the trustee won't look any further (like looking at your tax assessment or on Zillow, both of which are inflated in my opinion). But then I've been told that the trustee won't trust the atty and will do his/her own research on the value of the house. Anyone had experience w/ this?

    I've also heard varying stories about how the value is calculated...does the trustee look at the needed repairs like paint, carpet, etc. as well as the realtor and attorney fees that will be required to sell a house quickly and then deduct that from the appraised value?

    Bottom line, how far will most trustees go? Would they force us to sell our house even if it takes 6 months just to get $5,000 in equity to divide b/t my $65K in bills? I was told that sometimes they won't even let you borrow the money to pay them but will insist that the house be sold.

    Lastly, would it be okay for my husband to take out a HELOC in his name only and pay his bills or paint and re-carpet PRIOR to me filing individually? That way we'd have less equity.

    #2
    In the state of GA you can exempt up to 5k equity of any property.

    If you have the maximum of 10k and both of you are on the deed then your share of the equity is only 5k which you can exempt.

    I'd get an up to date appraisal though it is likely in the current economy the home may not be worth as much as you think.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

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