Ch7 question regarding house with homestead

[4Abetterlife]

Hello,

We filed ch7 under our states exemption which includes a homestead act. Our case was listed by our attorney as no asset even-though the schedules shows some misc assets including some household possessions, two used cars and a home with some equity well under the homestead limit amount. The trustee had asked for $ from us already for our cars and some home appliances. We tried to raise some money from friends and family but with no success. The amount was around 15K that he was asking and our attorney had suggested that we offer something, perhaps 6-8K.

We have not come up with any $ yet and the trustee had filed an extension of object to disclosure which has now passed already. It has been about 5 months since our 341 and my attorney thinks we are close to disclosure (all of our creditors were CC's)

My main concern is that if we ever wanted or needed to sell our home, and our case was still open, could the trustee come after any proceeds (less mortgages) for the sale of the house? Is there any time windows before or after a case gets closed that our home sale proceeds would still be vulnerable to the trustee?

Any advice would be greatly appreciated. Thanks

[tcreegan]

Hi 4Abetterlife,

One detail to find is the report the trustee gives to the court. That will have details on what the trustee has decided to do, they might abandon the assets, they might say no non-exempt assets, or they might say waiting to administer assets. Check w/ your attorny on the trustees report and what it means for you.

Basically, you need to make sure the trustee has their claws off it before you can get your hands on it.....

Tom in Colo

[4Abetterlife]

Hi Tom,

Thanks for the response. Would I find the trustee's report on Pacer? And what exactly would it be called?

Also, do you have any input regarding possible sale of my house and my potential vulnerabilities regarding so.

Thanks

[tcreegan]

Hi again 4Abetterlife,

I go to 'docket report' on PACER, anything filed in the case should be there. You want to see the trustee file a document that says they are going to 'abandon' the house, or something similar. I don't think there is a standard title or format, seems each court does their own thing.

Since the equity is less than your exemption, once the discharge is entered and the trustee is done, you and the mortgage lender can do whatever you agree on.

Hang in there, you're in the homestretch...

Tom in Colo

[4Abetterlife]

Thanks Tom,

I am assuming when you say "trustee is done" you would be referring to him "closing the case". But if I sold the house after discharge but before trustee closed the case then my equity would be up for grabs?

Thanks Again

[AngelinaCatHub]

If in a homestead state, FL, TX, examples, you have a safe haven. If you sell out, your proceeds are part of your estate. Don't do that.

Whatever your appliances are, are used. Offer them to the Trustee and he just may abandon them. Whatever else you have, offer them and again, he may give up.

We were treated fairly and paid 5K on non-exempt stuff worth more. Trustee gave us a year to pay, no interest, equal payment. We were pleased. Work with him, perhaps a lower payment could be made for you. 'Hub

[AngelinaCatHub]

Thanks Tom,

I am assuming when you say "trustee is done" you would be referring to him "closing the case". But if I sold the house after discharge but before trustee closed the case then my equity would be up for grabs?

Thanks Again

That is a possibility, but not a probability. I would wait as long as practical. 'Hub

[4Abetterlife]

Excellent info Hub, Thanks!!

WOW, you had a long road. I know what you mean now "Hang in there"

Thanks again