QUESTION
How long after the discharge do I have to wait so the creditors don’t take any of the profit?
Asked on May 02nd, 2017 on Bankruptcy - Nevada
More details to this question:
My chapter 7 was discharged in April. I want to sell my house and there will be a profit on it.
5 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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When your case is closed, your creditors can no longer take any portion of the proceeds of the sale of your home.
Answered on Jul 31st, 2017 at 4:39 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Before you think about selling make sure that the case is closed or the property abandoned. There are 2 components to a bankruptcy. 1 - The discharge. Normally it is entered 60 days after the 341 hearing. There are exceptions. More importantly there is 3 - The Administration. When a bankruptcy is filed an estate is created. Virtually all property becomes property of the estate. The estate is administered by the trustee. It can remain open for years. Until the case is closed or the house abandoned it remains property of the estate. Selling it during the administration can have drastic and unwanted results for debtors.
Answered on Jul 27th, 2017 at 6:13 PM
A creditor can get money out of the sale of your house only if they have a lien on it. In order to get a lien on your house, they first have to file a lawsuit against you and get a judgment against you, unless it is a second mortgage or a creditor you voluntarily gave a lien to. If the creditor had a lien before you filed bankruptcy, and you did not avoid that lien in the bankruptcy process, they will still get paid out of the sale of your house if there is any equity left after senior lienholders are paid.
Answered on Jul 27th, 2017 at 6:12 PM
It sounds like you are okay. If you are a "belt & suspenders" type, pay an experienced for an hour of their time to review your BK file with the court (the can do it from their office).
Answered on Jul 27th, 2017 at 6:12 PM
Once you received your discharge, assuming that there is no lien on your property by creditors, you keep all of the profit from any sale. However, if your bankruptcy is still technically open, you may need a court or Trustee permission in order to complete any sale.
Answered on Jul 27th, 2017 at 11:37 AM