QUESTION
Can I dismiss my bankruptcy case if it is going to affect the selling of my house?
Asked on Dec 31st, 2013 on Bankruptcy - California
More details to this question:
I filed bankruptcy 7 in October 30, 2012. The exemption law here is you can protect 100,000 in equity. I have approximately 85,000-90,0000 in equity. Home value market analysis was done and at that time was 312,000. I owe approximately 225. We went to court with an attorney. The trustee stated that the homes in my area were selling for 370 pristine mansions upgrades until my tonsils hurt. So he continued my court date until January 2 and wanted to look at my home. He really did come out so I got a paid appraisal, came back at 330,000 with needed repairs noted so I am a little over now, and that is without reviewing my appraisal. He is now sending a broker to inspect. What are my options? Almost seems my paid bankruptcy attorney and him are in cahoots. Kinda sick i know. I believe I heard someone say on here that they can come after your home one year later after bankruptcy if the value increases, is this true ? If so, if it slightly possible, then I need to get out of this bankruptcy 7 and can I have a motion put it to dismiss? This is in California.
3 ANSWERS
Criminal Law Attorney serving Fremont, CA
at
Steven J. Alpers, A Professional Corporation
Update Your Profile
It is unlikely that they will come after your house later. I would talk to your lawyer. The issue is how much equity you have. They judge you exemptions and equity as of the time of your filing. You can dismiss your chapter 7 or change it to a chapter 13, with a 60 month payment plan. You finances need to be evaluated to determine how much you would have to pay each month if you change to a chapter 13. You might also want to check to see what houses of the same size and condition have been sold for in the recent past. You may want to hire an appraiser for about $400-500. This will help greatly with your decision. (Have your lawyer hire the appraiser because that way it will be attorney-client privileged and not subject to disclosure to the trustee.)
Answered on Jan 03rd, 2014 at 1:14 PM
Bankruptcy Attorney serving Walnut Creek, CA
at
Alan E. Ramos Law Offices
Update Your Profile
Given the facts as stated, I would expect that you will not be able to dismiss your case. It is true that the trustee can keep a case open and take advantage of an appreciation in property value for the benefit of the estate. I doubt very much that your attorney is "in cahoots" with the trustee. As an officer of the court, your attorney has an absolute duty to cooperate with the trustee (s/he has no option to not cooperate), so his/her cooperation is not a conspiracy against you. If the property is sold, you will get a check for the full amount of your exemption and the balance will be used to pay your creditors.
Answered on Jan 03rd, 2014 at 11:36 AM
You can voluntarily dismiss your case at any time prior to receiving your discharge.
Answered on Jan 03rd, 2014 at 11:34 AM