Hyattsville, MD asked in Bankruptcy for New York

Q: I got homestead exemption in ny, I have full equity in my home. Do the trustee still have to sell the house? For Chap. 7

Also my unsecure are about 40 thousand, can i keep my property or must the trustee sell it, for Chapter 7? And if the trustee sells it will she cut a check for only the homestead exemption or all of the equity too?

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5 Lawyer Answers
Jonathan David Warner
Jonathan David Warner
Answered
  • Bankruptcy Lawyer
  • Albany, NY
  • Licensed in New York

A: That depends on whether there is non-exempt equity in your home. If there's another few thousand dollars of equity that is not exempt, or more, the Trustee may move to sell the house.

The issue, here, is that you cannot simply Dismiss your Chapter 7 case voluntarily. If the Trustee moves to sell the house, your sole, realistic avenue of relief will be to Convert your case to a Chapter 13.

Either way around, you should really consider hiring an attorney, based upon the relatively basic nature of the questions you're asking. Given that your house is potentially at-stake, it seems like a reasonable investment to consider.

Good luck!

Leonard R. Boyer agrees with this answer

Karra Kingston
Karra Kingston
Answered
  • Bankruptcy Lawyer
  • Staten Island , NY

A: Hello,

If your house is exempt then they won’t sell it but that is only if you are u see the exemption in New York.

You may want to hire an attorney that can help you.

Warm Regards,

Karra Kingston

Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: You need to consult a bankruptcy attorney and discuss converting to a Chapter 13, depending on how much equity is in your house.

Leonard R. Boyer
Leonard R. Boyer
Answered
  • Bankruptcy Lawyer
  • Clifton, NJ

A: You really need to discuss this in person with an experienced NY Bankruptcy attorney. Chapter 7 is probably not going to be the best solution to your problems. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.

Michael David Siegel
Michael David Siegel
Answered
  • Bankruptcy Lawyer
  • New York, NY
  • Licensed in New York

A: I do not understand your question. If your equity exceeds the homestead exemption, that excess value could cause your home to be sold in a bankruptcy.

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