QUESTION
Is the trustee going to immediately sell our home no questions asked? Or will he make us reaffirm 18K to be paid to the creditors? Or is that too low?
Asked on Jun 08th, 2013 on Bankruptcy - Colorado
More details to this question:
I am married with two toddlers. I recently filed for a single Chapter 7 bankruptcy for 60K unsecured debt. We are current on our mortgage and do not want our house to be sold. Our bankruptcy lawyer had a Comparative Market analysis/Broker Price Opinion done on our house and priced it 35-40K lower than we bought it. However our trustee thinks the home was valued too low and had their own Comparative Market analysis/Broker Price Opinion done. I do not know what their number is yet. I checked on homes and the highest number I saw was 250K.. I asked our attorney what if they came back with 250K? She said it was close but not to fret and see what they come up with. But worst case scenario the trustee prices it exactly what we bought it for 250K, we would have 18K in nonexempt equity. (I already removed all the deductions applicable including my husband's half of the equity). Please note that this is a single bankruptcy not a joint. I can't believe our home would be valued for what we bought it for or even more as the housing market isn't that great and we live in a "country area" not where it’s close to New York City at all.
5 ANSWERS
In that event, you may also consider conversion to Chapter 13.
Answered on Jun 12th, 2013 at 9:51 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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In Missouri, you may keep equity in real estate up to $15,000. A lot of trustees will let you pay them the unexempt amount and use that money to pay creditors. You may want to have your attorney try that strategy.
Answered on Jun 11th, 2013 at 11:29 AM
Personal Injury Attorney serving Glendale, CA
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JT Legal Group
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If it's close, then the trustee will want to put it up to see what prices it gets. Why wouldn't they try to see? If the market is going up, maybe they'll get lucky and hit 275 or something like that.
Answered on Jun 11th, 2013 at 11:27 AM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
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Respectfully, if you have counsel, I would recommend that you speak with him/her.
Answered on Jun 11th, 2013 at 9:42 AM
Deborah F. Bowinski
You really should be asking your attorney these questions. Generally, chapter 7 trustees want payment of non-exempt equity in fairly short time frames. If there is a higher value based upon the trustee's assessment then your lawyer should make sure that costs if sale are deducted from the too before calculating the non-exempt equity. Also, you might discuss whether conversion to a chapter 13 case would be an option to help save the home.
Answered on Jun 11th, 2013 at 9:40 AM