How Do I Collect My HomeOwner's Exemption?

[Tallulah]

I filed Chapter 7 BK in June of 2005. (HUGE mistake, btw!)

My business was sold last year and my house was sold in 2006. I have yet to see my exemption.

When can I expect to see my exemption? No one can tell me anything.

Thanks in advance for any advice!

Tallulah

[fltoo]

A bit foggy I am. Exemption for what?

Very interested in that you said BK was a big mistake. If not too personal, may I ask why?

[JRScott]

I assume you were able to exempt a portion of the value of the business and home?

I would contact the lawyer's office or trustee's office.

[HHM]

I assume you mean the BK trustee sold your home, correct?

[Tallulah]

Yes. The Trustee's lawyer sold my home and business. (It's a very long, nightmarish story hence I'll be brief.)

I have ASKED the Trustee, his lawyer AND the BK judge WHEN I'll get my exemption. They would never answer me. My X husband was ordered to be given his portion of the sale.

My X was in default of our divorce judgment. Our divorce was final in Oct. 2003. Due to enormous difficulties with him, I sought the advice of an attorney. She had me file a Chapter 7 and said that "if it doesn't fly" I could convert to a 13. I later learned that I could NOT convert to a 13.

Thanks in advance!

Tallulah

[soleprop]

man that sounds fishy. why in the world wouldn't you have already gotten your exemption value back? this is two years ago. in for the read....good luck!

[Tallulah]

man that sounds fishy. why in the world wouldn't you have already gotten your exemption value back? this is two years ago. in for the read....good luck!

But WHEN is a homeowner's exemption supposed to be released to the debtor???? I've been trying to get an answer to this for years now.

Tallulah

[HHM]

You may need to check your state's law on this issue.

It is possible that if the house is actually liquidated, you lose the exemption. The reasoning may be something like this: The purpose of the homestead exemption is to prevent judgment creditors from foreclosing their liens against equity in your house up to the value of the exemption. However, if you have excess equity above the exemption, then the exemption does not apply. When the house is liquidated, you have no more homestead, per se, to exempt.

In any event, I am just speculating.

[BKParalegal]

HHM is correct if the property was sold by the lienholder, but if the trustee sold it, then the homestead exemption applies, and she will receive the funds. If this is the case, the trustee sends a notice to all creditors to file a claim, also if there were any other non-exempt assets (especially in a business, where there was inventory and/or accounts receivables) the trustee will wait until all those assets are fully administered before filing the TFR(Trustee's Finall Report) and distributing the funds. This can take up to 3-5 years.

Good Luck

[Tallulah]

HHM is correct if the property was sold by the lienholder, but if the trustee sold it, then the homestead exemption applies, and she will receive the funds. If this is the case, the trustee sends a notice to all creditors to file a claim, also if there were any other non-exempt assets (especially in a business, where there was inventory and/or accounts receivables) the trustee will wait until all those assets are fully administered before filing the TFR(Trustee's Finall Report) and distributing the funds. This can take up to 3-5 years.

Good Luck

Having trouble editing this. Read below.

[Tallulah]

Thank you, BKP. I've been following PACER and it appears that the Trustee has filed his final report or is about to.

I was ejected from my business (by the Trustee's lawyer) in Dec. 2005 but was told to continue making my home mortgage payment. Pfffft. Of course, with absolutely NO income and no way of enforcing or holding my X accountable for defaulting on the divorce decree (due to the BK) the bank brought forth a motion to lift-stay (? is that the right term?) when I couldn't make the payments. The BK literally flushed my divorce decree right down the toilet. Also, the Trustee's lawyer told me that I would receive ~half~ of the profits of the business while my X had total control of it. Needless to say, I never saw a penny nor was I ever informed of whether there was a profit. 'Course, with my X in control (and after having been financially abused by him for YEARS) I knew I'd never see a dime and I didn't.

Tallulah

[JRScott]

Tallulah when I mentioned talk to the lawyer, I was referring to your lawyer. If you filed pro se you'll just have to wait, but if you filed with a lawyer they can tell you how things work in your area and help you understand the process. I think BKParalegal though did explain the situation, it most likely will be another couple of years, these things move slowly sadly.

[Tallulah]

Scott!

My lawyer skedaddled when the 7 'didn't fly'. The lawyer for the Trustee threatened to sue her for his fees. She abandoned me almost from the onset of all this. I am lawyerless and penniless.

Tallulah