If you actually sell your home before you file

[nervous1]

Given the housing market today, I'm not sure if we're going to try to sell or not. Have to decide very soon.

But, if we do, and actually come away with a profit, what happens to it if you file BK7?

What factors are considered? Employment earnings?

Can the $$ be put into an IRA and protected?

[justbroke]

These are excellent questions to ask a qualified bankruptcy pre-planning specialist or property protection specialist. As you are aware, the proceeds are "personal" property and subject to being part of the bankruptcy estate. Whether you can "easily" move the proceeds to an exempt category will depend largely on where you are and what caselaw reads. Generally, you can convert non-exempt assets into exempt assets. The real problem is if it is determined -- or you are -- doing so exclusively to hinder, delay or defraud creditors. I can't answer that question for you, and is why you should get some help.

If you want to learn about Bankruptcy you can start with the Stickies here on the forum or go read about it in detail at LegalConsumer.com