Q: If you have a house that you need to sell however you are in the middle of a bankruptcy when can you sell the house?
My husband passed away recently from cancer. Because of the expenses, we are in dire straights financially and I will probably have to file for bankruptcy while I try to determine what to do. I need to keep my house long enough to be able to sell it and get the equity+ out of it. The house is homesteaded. Can I file for bankruptcy and still try to sell the house? And yes, I am behind on the payments.
A: Any equity you have in that house (above your exemption) would belong to the bankruptcy estate if you file bankruptcy. Meaning, the Trustee might sell it to take that money to pay your creditors. You may have enough of an exemption to protect that equity, but what is available to you will depend. Do not file bankruptcy on your own. Make sure you retain an experienced bankruptcy attorney.
Timothy Denison agrees with this answer
A: I’d you file bankruptcy, you’ll need to get permission from the trustee and the court to sell your house and they may take all your equity to pay your creditors. If you haven’t filed yet, consult a competent bankruptcy lawyer to help you navigate the pitfalls.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
