Selling house

[billybob37]

I recently filed 13. The 341 is early Feb. I think I have found someone to buy my home. I will have to send the trustee a copy of my contract. The homestead exemption in my state is 20,000 for a couple. If I make $10,000 off the house is that money exempt?

[billybob37]

One other thing. Does it matter that my bk is not confirmed yet? Someone said that if I wasn't confirmed that I could sell without permission.

[Flamingo]

I recently filed 13. The 341 is early Feb. I think I have found someone to buy my home. I will have to send the trustee a copy of my contract. The homestead exemption in my state is 20,000 for a couple. If I make $10,000 off the house is that money exempt?

Since you have already filed, contact your attorney immediately about this situation and follow his/her advice. Selling your home will change a lot of things as to your situation.

[billybob37]

I did talk to my lawyer and he said to bring in a copy of the contract and he will file a motion to sell. If the equity is exempt, will I get to keep it? What did you mean by "this will change alot of things as to my situation?" I plan on renting something after I sell for about the same amount. The reason I am selling is because of an ARM about to adjust.

[Flamingo]

I did talk to my lawyer and he said to bring in a copy of the contract and he will file a motion to sell. If the equity is exempt, will I get to keep it? What did you mean by "this will change alot of things as to my situation?" I plan on renting something after I sell for about the same amount. The reason I am selling is because of an ARM about to adjust.

What I meant was that depending upon any proceeds from the sale and other factors, it could entirely change your Chapter 13 plan. The Trustee will be reviewing the entire situation and if the Trustee approves the sale, the attorney and Trustee both will petition the Court for you to be allowed to sell the house. I am surprised the attorney did not give you further information. I would certainly request a copy of the Motion.

[CindyLou]

I'm pretty sure the homestead exemption only applies if the money is still invested in the homestead. Once you sell the property the money can no longer be exempted under homestead. Unless there is another exemption you can use then the money would become non-exempt.

[southerncomfort]

I'm pretty sure the homestead exemption only applies if the money is still invested in the homestead. Once you sell the property the money can no longer be exempted under homestead. Unless there is another exemption you can use then the money would become non-exempt.

I agree. I don't think the trustee's office would consider the payout to you as equity that you get to keep since you would no longer be residing in the home.

[billybob37]

Well, I will need money to move with and pay deposits, possibly double deposits since my credit is crap.

[Flamingo]

Well, I will need money to move with and pay deposits, possibly double deposits since my credit is crap.

We all know it's hard and frustrating as all heck. Sit down and have a good discussion with your attorney on this to ensure you have all the correct information you need as to what will or will not occur in your particular situation. He/she knows your entire financial situation and is the best source.

[CindyLou]

Being that you already filed, your house is part of the BK estate. Any proceeds, in my opinion, would go directly to the trustee to distribute to the creditors.

Otherwise, it would be counted as income and could raise your monthly payments by quite a bit.

I certainly wouldn't count on keeping any of that money right now, but you could talk to your attorney and see...

[AboutToBK13]

Depending on your state there are other exemptions (wild card, etc.) that can be used. Keeping in contact with yoru attorney. I know for us, we are allowed to exempt upto 10K in actual cash on hand. $5K for each of us.