Trustee/House Question

[Adventura]

If the trustee in my Chapter 7 case were going to come after the house--he may feel my exemption does not cover ALL possible profit--when would I be notified? Would it be within weeks of filing, or would I have to wait until after the 341?

[justbroke]

It would usually be after the 341 Meeting. The Trustee will either file a Report of No Distribution rather quickly, or will delay issuing any report as they figure out if there "will" be a Distribution. This would make you an asset case.

No one can predict how your particular Panel Trustee will base his/her decision, but generally, if there's non-exempt equity, the Trustee will seek to recover it for the creditors.

[Adventura]

There may or may not be non-exempt equity--it is really hard to tell. The RE market in my neighborhood is doing some wacky stuff right now. Some comparable places are selling relatively cheaply, while others are going for 30-40K more. There is no rhyme or reason right now, it is very weird.

I have plenty of exempt equity if my place is valued at the bottom end, which it was when I got the brokers price opinion--mostly because the house needs work. However, if the trustee sees it differently, that 30-40K swing could put me in the danger zone.

Oh well, just have to wait until after the 341 mtg.

I so look forward to being able to sleep all the way through the night again someday....

[tknj99]

Is it non-exempt equity that will cause a trustee to require you to move out of the property if you are surrendering it? I am confused as ive heard that some people can surrender the primary residence when they file and live there for free and save money until foreclosure eventually kicks them out.. then ive heard of the opposite where the truestee required them to move within 30 days..
So if my home is underwater over 100k, would i be safe to assume that i will not be required to move when i file?

[justbroke]

If the Trustee is trying to sell the home, the Trustee will probably want you out of it. If your home is underwater and the Trustee abandons the Estate's interest, you can stay until the earlier of the bank foreclosing or you deciding to just leave.