profit from home sale during BK exempt?

[PDXbk]

Anyone know for sure whether the profit we make on our home sale - which will likely happen BEFORE discharge - is exempt? We're covered by the homestead exemption, right? In our state it's $33k for two spouses, and we won't get near that much.

We filed with the intention of keeping the current mortgage. Do we need to ammend the filing to show our intention to sell?

THanks!

[Minnymouth]

Did you file pro se??
If not you need to talk to your lawyer. You are not supposed to "buy or sell" anything during the bankruptcy process...... you are supposed to wait till after Discharge....

You may need to notify the Trustee of your intent....
Minny

[StaciMM]

My guess (and it is a guess, no experience on this topic) is that if you line up a buyer & complete the transaction all after filing, and the $$ you make is less than your exemption, you should be fine. Even if the trustee were to sell it, they would have to pay off your mortgage and give you the exemption amount.

[AAAArt]

My guess (and it is a guess, no experience on this topic) is that if you line up a buyer & complete the transaction all after filing, and the $$ you make is less than your exemption, you should be fine. Even if the trustee were to sell it, they would have to pay off your mortgage and give you the exemption amount.

Staci, You are far more knowledgable on BK than I am, but I would think differently. The homestead exemption is so that you can keep a roof over your head. If that is converted to cash, I would think that would become an asset and the truatee.
I would really like to know the answer to this as there are some items I would like to sell...probably no more than $1000 - 1500. I placed "garage sale prices on them, but know that if I Ebayed them or listed them on a couple Forums, that I could prob. get much more than the actual garage sale value. Currently, I am holding off on this, but would like to do it as another action step towards solvency. Art

[StaciMM]

Its a good question-if anyone will be talking to their attorney this week, perhaps they can ask?

[PDXbk]

Thanks for the 411. Turns out you guys were right; we can't sell our home until after the discharge. Duh! I had the homestead exemption fixed in my head and forgot the most obvious point of bk7 - the trustee controls your property during the process and nothing can be sold unless he/she abandons it.

New plan - we'll try to hang on to the house until after discharge, then sell. As it stands, I don't think they can finish foreclosure until at least two months after our discharge, which gives us two months to sell. But I could be wrong about that one too ...