I have a complicated situation that I'm hoping someone can help with...
I am filing chapter 7 individually. Although I am not on our mortgage I am on the deed to the house. We *think* we have about $30,000 in equity before exemptions, home repairs and the fees associated with putting the house on the market and selling it (which is what I understand the trustee will calculate all these prior to deciding whether or not there is equity he can take). My state only protects $10,000 in equity for an individual filing but $20,000 for those filing jointly.
First question: The tax assessed value is approximately $40K more than the values shown on Zillow and similar sites. Will the trustee meet me in the middle or at least take an appraiser's valuation along with quotes for necessary repairs, or is he going to go with the highest value possible and force us to sell the house?
Second question: My attorney has told me that if the trustee were to want the equity and force a sale that most likely he or she would have to take $20,000 off the top even though I am filing individually (because he would have to give my DH his share of the equity). Does this sound right to all of you? I think I've read that the trustee will actually just split the $10K between me and my husband and don't know which situation to believe...
This is the one thing that is making me lose sleep in this whole nightmare and I'm just hoping that after $20,000 and fees that it would cost to sell the house that the trustee will decide it's not worth it or just let us pay him the small amount of equity that *might* be left. What do you all think?
I am filing chapter 7 individually. Although I am not on our mortgage I am on the deed to the house. We *think* we have about $30,000 in equity before exemptions, home repairs and the fees associated with putting the house on the market and selling it (which is what I understand the trustee will calculate all these prior to deciding whether or not there is equity he can take). My state only protects $10,000 in equity for an individual filing but $20,000 for those filing jointly.
First question: The tax assessed value is approximately $40K more than the values shown on Zillow and similar sites. Will the trustee meet me in the middle or at least take an appraiser's valuation along with quotes for necessary repairs, or is he going to go with the highest value possible and force us to sell the house?
Second question: My attorney has told me that if the trustee were to want the equity and force a sale that most likely he or she would have to take $20,000 off the top even though I am filing individually (because he would have to give my DH his share of the equity). Does this sound right to all of you? I think I've read that the trustee will actually just split the $10K between me and my husband and don't know which situation to believe...
This is the one thing that is making me lose sleep in this whole nightmare and I'm just hoping that after $20,000 and fees that it would cost to sell the house that the trustee will decide it's not worth it or just let us pay him the small amount of equity that *might* be left. What do you all think?
Bankruptcy Wizard
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