QUESTION
Can I sell my house, keep 100% of the proceeds and move to another state with plans on purchasing another home to reside with no penalty or issues?
Asked on Jul 05th, 2014 on Bankruptcy - Colorado
More details to this question:
I received dismissal on June 15, 2014 chapter 7. I am paying portion back on vehicle only. I own the home outright. We need to move to another state. Case is not closed yet. Do you see any issues or if we reinvest the money back into another home, is that all okay? Thank you.
9 ANSWERS
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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You are not authorized to sell real property until after the case is closed or you obtain an order from the bankruptcy court abandoning the property from the estate to you. You should consult with a bankruptcy attorney regarding this matter.
Answered on Jul 09th, 2014 at 4:46 PM
Unfortunately there is not enough information to give a definite reply. Based on the information provided I would say it sounds possible that you could do what you want to do. I would not be comfortable saying more than that without reviewing the relevant documents.
Answered on Jul 09th, 2014 at 10:37 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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I would advise against selling your residence until the bankruptcy case is closed. The reason you have the right to your house is that it qualifies for the "homestead" exemption. If you sell it, then it ceases to be a homestead and just becomes cash. There are arguments both ways and possibly the trustee won't get involved but if the trustee decides to sue you for turnover of the money, you'll be tied up in court for at least a couple months and possibly for years and will incur thousands in legal expenses. Unless there is some complication, usually bankruptcy cases are closed within a few weeks of issuing the discharge.
Answered on Jul 09th, 2014 at 5:02 AM
There are a lot of legal nuances to your question. To get the proper advice, hire an attorney and pay for a one hour face-to-face meeting. Make sure the attorney is experienced (for example, make sure they have filed over five thousand bankruptcy cases). Any attorney worth his or her salt will charge you about $350 for a one hour visit. Bring all of your BK papers with you, in chronological order (you don't want to pay an attorney hourly to organize your file). To get appropriate answers to your legal questions, you need to proceed as suggested. Otherwise, you will be "penny wise and pound foolish".
Answered on Jul 08th, 2014 at 3:13 PM
Debt Settlement Attorney serving Chicago, IL
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Law Offices of Daniel J. Winter
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You need to talk to your lawyer now to discuss this, and, you cannot sell your house, generally, without bankruptcy court approval while your case is still pending. If you didn't have a lawyer in the bankruptcy, you probably will need one before doing anything.
Answered on Jul 08th, 2014 at 3:06 PM
Did you really mean that your Chapter 7 was dismissed or did you confuse the word discharge with dismissed? Because a dismissal closes a case out right away, but a Chapter 7 case can remain open after a discharge for many months. Please try to use exact legal terms when posting a question, because you are bound to get a wrong answer when you use the wrong word.
Answered on Jul 08th, 2014 at 11:02 AM
That is fine as long as the equity in the house was exempt.
Answered on Jul 08th, 2014 at 4:11 AM
Family Law Attorney serving Indianapolis, IN
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Arany & Associates
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Sounds like you are about to get a BK discharge and that your BK trustee is taking only part of the equity in your vehicle, and not in your house. IF that's true, then its ok to sell your house and hold the proceeds. I suggest that you confer with your BK attorney!
Answered on Jul 08th, 2014 at 4:10 AM
Deborah F. Bowinski
Until your case is closed at the court you do not have the right to sell your home without an Order for Abandonment from the court. You say your case was dismissed, but it seems as though you may mean discharged - there is a big difference. You also don't state whether there is any non-exempt equity in your home that your trustee has the right to. Without knowing what state you are in, what the value of the home is, whether it was properly listed and disclosed in your bankruptcy schedules, and whether you correctly claimed any exemptions to which you were entitled, it is impossible to answer your question in any greater detail.
Answered on Jul 08th, 2014 at 4:08 AM