QUESTION
Can my dad sell his house after filing for bankruptcy due to medical bills?
Asked on Sep 17th, 2012 on Bankruptcy - Texas
More details to this question:
My father has had a severe case of West Nile Virus, and may never walk again. He's facing more than $100,000 in medical bills, on top of $20,000 in bills related to a surgery he had last year. He only assets are his monthly SS check, and a small house his mother left him, which is paid off, except for a $10,000 home equity loan. Once he is out of rehab, I would like for him to declare bankruptcy to clear his medical debt, sell his house and let us invest that money for him to grow old on, then move him closer to us and live in a condo that we would purchase and rent out to him. If he declares bankruptcy, can he sell the house and invest the money?
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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I'm sorry to hear about your father. That's a tough situation. Whether your father can keep his house in bankruptcy depends on which chapter he files, the value of the house and his other assets, and what exemptions are available under applicable law.
Exemptions are "protections" for value you have in certain assets such that they are "exempt" from collections. Every state has different exemptions amounts available. Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.
I believe Texas has an unlimited homestead exemption, so he may in fact be able to do what you suggest, but you should consult with an experienced bankruptcy attorney in the area where he lives for more details.
Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of California Board of Legal SpecializationHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter: @bklawr
Answered on Sep 17th, 2012 at 2:25 PM