Sale of home during BK - what happens to $$ ?

[jmc]

I think I know the answer to this but would like some confirmation please....

In a state (OK) where homestead is exempt to unlimited value.... If I file for BK on October 1, have a sales contract on October 10, close by November 10, receive proceeds of $20k from sale... Those proceeds are untouchable, correct?

[jmc]

"Untouchable" by the TT is what I meant...

[jribe]

I think I know the answer to this but would like some confirmation please....

In a state (OK) where homestead is exempt to unlimited value.... If I file for BK on October 1, have a sales contract on October 10, close by November 10, receive proceeds of $20k from sale... Those proceeds are untouchable, correct?

why do you think they're not touchable? The homestead is exempt- not the profits from a sale. You'll need to cover the 20k in your exemptions. Either that, or wait until your discharged..

[miozelous]

They are not untouchable. I am also selling my house during BK. My lawyer said I had upto 6 months to invest in another home with the money I have leftover or it is going to go to my creditors. I live in TX and you have to get permission from a judge before you can sell a home if you have not been discharged.

[keepmine]

Yep, the equity in a home may be exempt but, cash from the sale won't be .
Wait until after discharge before you list the house for sale.

[want2save]

Discharge or CLOSED in a Chapter 7 asset case?

[keepmine]

If you're an asset case, you need to wait until closing.
In fact just to be 100% safe, I'd wait until closing if you're a no asset Chapter 7.

[want2save]

Interesting. I have no intention of selling my home, but it is an exempt asset. My lawyer told me it was ok to withdraw my IRAS now (after discharge but before closing) as they are exempt assets. What would the difference be? I saved his email so advising me in case there is a problem later. :-)