QUESTION
Can I sell my house prior to a chapter 7 bankruptcy discharge?
Asked on Sep 05th, 2015 on Bankruptcy - Washington
More details to this question:
I accepted an offer for my home days before my chapter 7 was filed. Can I close on the loan prior to 341 hearing?
6 ANSWERS
You can sell your house prior to your Chapter 7 discharge, but to do so you will need trustee permission and a court order. And even if you wait to receive your discharge, you will still need trustee permission and a court order if your case is open for administrative purposes.
Answered on Sep 09th, 2015 at 11:58 AM
Be sure and speak with your lawyer, or a lawyer (you may have to pay for the advice, but you have a lot to lose!). Make sure the money is isolated. Also, I am assuming you are not receiving more then the exempt amount allowed by law. If you are receiving more, explore your options ASAP with an experienced BK lawyer (prior to the Creditors' Meeting). Good luck!
Answered on Sep 09th, 2015 at 11:57 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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No, your house is part of the assets of the bankruptcy (called the "estate"). You do not have the right to sell any asset without the approval of the bankruptcy court. In order to get the right to sell the home, you'll need the approval of the court which is unlikely unless the trustee isn't interested in the asset, i.e., there is no equity that can be used to pay trustee fees
Answered on Sep 09th, 2015 at 1:12 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It would be far better to notify your trustee of the offer and seek his or her approval before closing. Be certain that your share of the proceeds are entirely exempt. Find a skilled BR lawyer to advise and represent you. It's almost always worth the money.
Answered on Sep 09th, 2015 at 1:10 AM
If the amount you make from the sale is disclosed and exempted, you are fine.
Answered on Sep 08th, 2015 at 8:54 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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This creates an untold number of problems. You need to contact your attorney immediately and let them know. It probably impacts exemptions, it probably impacts your discharge. In some cases it can lead to a criminal investigation. Do not do anything until your attorney is familiar with what is going on and can see if there is a way out.
Answered on Sep 08th, 2015 at 8:23 PM