QUESTION
Can we sell our home and use the equity to buy another home?
Asked on Jul 08th, 2014 on Bankruptcy - Kansas
More details to this question:
We want to sell our house. We filed Bankruptcy 7 in 2012. However we did not reaffirm our home. Can we sell our home and use the equity to buy another home? We are current on home now.
17 ANSWERS
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
Unless there is some reason that your case is still open you should have no problem selling your home.
Answered on Jul 10th, 2014 at 11:47 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The lender on your present home has a lien against it and the amount of that lien is determined by whether you have made payments on the house since the bankruptcy. Since you didn't reaffirm, I assume that you haven't made any payments - in that case the interest and the late payment penalties have probably raised the lien so high that you have no equity left.
Answered on Jul 10th, 2014 at 4:24 AM
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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The Law Offices of Peter M. Lively
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Yes, if your prior Chapter 7 case is closed. Reaffirmation does not affect your ability to sell.
Answered on Jul 09th, 2014 at 2:35 PM
As long as your Chapter 7 bankruptcy is fully closed, you may sell your home and use the proceeds in any way you like. But simply having a bankruptcy discharge is not proof that your case is closed. If your case is not closed, you will need court permission to transfer the title to your house.
Answered on Jul 09th, 2014 at 1:54 PM
Assuming that your Trustee is not administering the house and your case is closed, you are free to sell the house and enjoy the benefit of the equity.
Answered on Jul 09th, 2014 at 12:56 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Yes, you can sell your house, as long as the outstanding mortgage is satisfied.
Answered on Jul 09th, 2014 at 12:35 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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That should not be a problem. However, before you start looking make sure that the bankruptcy case is closed and the home abandoned. There are two (2) parts of every bankruptcy. The first is the discharge. The second is administration of the estate assets. The discharge is usually granted 60 days after the ? 341 meeting. The case may be open for administration for years. A great number of people, including attorneys, do not seem to understand the difference. If you are thinking about selling the house, make sure that the case is closed and the house abandoned.
Answered on Jul 09th, 2014 at 12:33 PM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Yes, you can sell the home, as long as your bankruptcy is closed.
Answered on Jul 09th, 2014 at 12:21 PM
Probate Attorney serving Friendswood, TX
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Law Office of Melissa A. Botting
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Yes, you can sell your home. The equity in a homestead is free from creditors if it is invested in a new homestead within 6 months of the sale.
Answered on Jul 09th, 2014 at 12:07 PM
Absolutely, as long as you pay off the mortgages that you voluntarily placed on your previous home when you sell it you will have no problem. If you would like to speak further about the real estate closing process or consult regarding attorney representation, please contact us. We would be happy to facilitate a purchase or sale for you.
Answered on Jul 09th, 2014 at 11:36 AM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Family Law Attorney serving Indianapolis, IN
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Arany & Associates
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I love your question because my answer will be good news: Most probably, yes! I suggest your consult your bankruptcy attorney, in case your case is still open and being administered by your chapter 7 trustee. Your attorney will be able to advise you about how to handle the issue of an anticipated proceeds that exceed the amount of your bankruptcy exemption related to your home. Good luck!
Answered on Jul 09th, 2014 at 11:35 AM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Yes. As long as the bank has not foreclosed on the property yet, you should be able to sell your house and use the proceeds to buy another.
Answered on Jul 09th, 2014 at 10:48 AM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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The simple answer is yes. I presume your trustee abandoned whatever equity might be in the house at discharge so you're good to go. Good luck and don't buy too much house.
Answered on Jul 09th, 2014 at 10:48 AM
If your case is closed with the Court, then yes.
Answered on Jul 09th, 2014 at 10:36 AM
Bankruptcy Attorney serving Walnut Creek, CA
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Alan E. Ramos Law Offices
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Based on the information that you presented, there should be no reason why you can't sell your home and buy another home.
Answered on Jul 09th, 2014 at 10:36 AM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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The purchase price will be enough to pay off the lien, so the fact that it was not reaffirmed really shouldn't have any effect on anything. And because you're planning to put the equity into the next home you really don't have any issues that I can see. Technically you didn't state in your fact pattern that the Trustee had abandoned the estate's interest in the home and some Chapter 7's actually do drag on for 2 years. I'm guessing you would be well aware if the Trustee was holding your case open for this long looking at assets, but I would check with the Court that it's closed and if not review any report related to Distribution.
Answered on Jul 09th, 2014 at 10:35 AM