Question

[mamatokiddos]

I am new to this and have a quick question. We filed on July 1st, have our 341 in August...since we stopped paying our credit cards we have been able to save a "little" money to pay our real estate taxes, which the 1st installment is past due and the second is due 9/1. I am hoping to have enough to have them paid before the sale date in October. So that being said, we have about $2000 extra in our account that is to go towards our taxes, will this pose a problem at our 341 or any other time? Can I just withdraw it and keep it in the house? We have bills to show we need to pay our taxes, and otherwise are still living paycheck to paycheck to pay our other bills. What do you think?

[DebtEnder]

Is the property you are paying taxes on being sold and if so to whom. At a foreclosure auction or private sale?

As I understand it selling a house while in active bankruptcy would require the Trustee to be involved. The house/real estate is part of the BK estate and therefore he is in entitled to any proceeds from the sale if above and beyond the loan amount and any exemptions that may have covered it. He will have to approve any sale possible non-exempt property. Even if the house is exempt he would still probably want to know about it. Real estate is big money and he wants to make sure it's sold for it's true value as he wants a cut of it if at all possible. This is where the earn a living.

If it's a foreclosure sale then the BK filing would have stopped that anyways and paying property taxes on a home your losing anyways is a waste of cash you need. The taxes can put a lien on the house and stay with the house, not with you. A private sale I can understand why you want to pay them off the tax lien would have to be paid off before title could be transferred but if it's just the bank the bank will pay off the taxes to get a clean title themselves. No concern of yours.

To answer the question itself after you file any money you make after that is your own. The filing takes a snapshot of your assets at the time you file and that's what the court works with to decide if you have any assets. As such any assets that you did not exempt you can't sell as the court will liquidate them to pay off creditors. Other stuff such as small household goods cheaper appliances and such you can sell if you like for extra cash and the TT will not care. But as I said before large ticket items, even if they are technically exempted like real estate or a nice almost/paid off car I would get an ok from the trustee before selling those.