After BK buying a home

[wayout]

It's simple. I have equity in my home 150,000 that's paid off.

I owe 75,000 in CC debt.

I own a P.O.S. car

I did not file yet

Unsecured creditors can't auction your home or the trustee can't. They can only put liens on it till you sell it.

So after the BK 7 hearing is over and the Judge/trustee forward liens onto my deed. Can I rent the house out without the trustee/creditors changing the deal?
You know real estate may change for the better some day so I will have a handle on property that can make me money, minus the liens.

Or can I win the lottery the next day after the BK 7 without problems? This example really means cash from friends etc...

[ValleYum]

I think I see where this is going, but still learning what "wayout" is really wanting to know.
I didn't see where he said he owned the house outright but it seems that way now.
I thought he said he had filed bankruptcy and the house survived with $75,000 exemption equity and he wants to now rent the house out. He seems to be asking if the unsecured debtors who had placed a lien on the property prior to bankruptcy could prevent him from renting the house out.
I am not an attorney and I hope an attorney jumps right in to answer these concerns, but my understanding is that if the debts by the unsecured lien holders was discharged in the bankruptcy, he can go back and have the judgment removed from their original court. To me, that can effectively void the liens on the property, but even if the liens somehow survive, I wouldn't think the lien holders could continue collection activities by foreclosing on the property. Don't really know, but I would like to. Attorneys?

Sorry mlsj - I should have been clearer in my response because I already knew the answers to most of this from a previous thread.

I already knew:
No mortgage house and his house is worth 150k in CT
The CT homestead exemption is 75k
OP has not filed BK

I was essentially trying to tell the OP that his 75k worth of creditors are not just going to sit around and wait for the OP to decide to sell the house at his leisure since the home ia worth 150k and there is no mortgage. This is, of course, once they receive a judgement(s) against him.

ETA: I also listed "paying off the mortgage / secured creditors" in my list to the OP for the benefit of future forumers and that, too, made it unclear - my apologies again!

[ValleYum]

Unsecured creditors can't auction your home or the trustee can't. They can only put liens on it till you sell it.

You really underestimate the powers of a Chapter 7 Bankruptcy Trustee - and also the powers of unsecured creditors who have a judgement when you have a home worth $150k that you own free and clear.

[mlsj2009]

It's simple. I have equity in my home 150,000 that's paid off.

I owe 75,000 in CC debt.

I own a P.O.S. car

I did not file yet

Unsecured creditors can't auction your home or the trustee can't. They can only put liens on it till you sell it.

So after the BK 7 hearing is over and the Judge/trustee forward liens onto my deed. Can I rent the house out without the trustee/creditors changing the deal?
You know real estate may change for the better some day so I will have a handle on property that can make me money, minus the liens.

Or can I win the lottery the next day after the BK 7 without problems? This example really means cash from friends etc...

Registered User B/F Newbie

Join Date
Nov 2010
State
Texas
Posts
34


1. Did you file bankruptcy after unsecured creditors got judgments against you and placed a lien on your house?
Your answer is obviously, NO.
2. What kind of bankruptcy did you file and is it now closed?
Again, the answer is obviously, NO.
3. Do you really own the house outright or is their a primary mortgage on the home remaining?
The answer is obviously, yes and it is worth $150,000 on today's market
4. If you filed a Chapter 7 with more than $75000 exemption equity left in the home, why didn't the trustee not liquidate the house?
Because you have not yet filed.
5. Did you file pro se if you have filed bankruptcy at all?
You have not filed yet, so you have not filed pro se.
6. What did you mean by stating "creditors can put liens on it till it's sold ( when I decide to sell ) in a BK settlement, in a BK Settlement? What was settled?
No bankruptcy filed, so no settlement.

"Unsecured creditors can't auction your home or the trustee can't. They can only put liens on it till you sell it." Creditors, depending on the state in which you live might not be able to auction off your home, but if you file a Chapter 7 bankruptcy, the trustee might be able to, regardless of whether others have unsecured liens. Your case will be an asset case if you qualify for a Chapter 7 case, and if you have significantly more equity than your homestead exemption allowed in your state, the trustee might sell your house, give you the exemption amount, and pay your creditors the rest based on priority payments.

"So after the BK 7 hearing is over and the Judge/trustee forward liens onto my deed. Can I rent the house out without the trustee/creditors changing the deal?"LOL, if you still have a house after the close of a bankruptcy, as long as the title is in your name, you should be able to do whatever you want to with it until you are no longer on the title. A bankruptcy Judge or trustee is not likely to forward or transfer any deeds. A bankruptcy judge can void a lien if there is a legal reason to do so. A successful unsecured creditor who gets a judgment against you in a civil court for a debt you owe them can attach a lien on your property, but if the debt is discharged in bankruptcy, the lien is no longer worth much, or at least, that is my understanding.

"Or can I win the lottery the next day after the BK 7 without problems? This example really means cash from friends etc... "
Sure, you can win the lottery the next day after the BK 7 closes, but don't tell the trustee you had a premonition about winning it. Committing fraud is a crime punishable by fines and imprisonment!

I am not a lawyer, and these comments are not intended as legal advice but are just my opinion and comments. If you need legal advice, get yourself a certified lawyer.

[LadyInTheRed]

wayout, the trustee CAN sell your home in a Chap 7. If you have $75,000 in non-exempt equity in your home and file BK 7, you should count on that happening.

The bankruptcy system is not designed to allow you to keep significant assets while getting out of paying your debt. A person who is not in fact insolvent has little or nothing to gain from a Chap 7. Consult with a couple bankruptcy attorneys to get advice on what makes most sense for you and have the bankruptcy process explained to you.

[wayout]

Well I thank you all for your help. I wanted to know what cards I have to play before I talked to an attorney.

There is a lot of bull poop out there. Thanks again

[AngelinaCatHub]

Also, here in FL if you are not using the house as your own homestead, you have no homestead exemption. I believe TX is the same. Be careful and YES getting a lawyer is advisable as your questions are very complex. I do understand your love for the house, of course. But in FL they cannot take your homesteaded property until you sell it in which that voids your homestead exemption immediately. To rent it negates that as well. It become simple chattel as anything else. Good advice before a disaster in your life. 'Hub

[wayout]

Yea thanks I'll find out if CT lets you keep Homestead property with leans too.
It's creepy that someone is still watching your affairs after BK 7.
I like that new word I learned today 'chattel' very helpful.