Legal Question in Bankruptcy in California

discharge bankruptcy

a joint 7 bankruptcy was filed 10-01-2005. both parties on social security. a home is involded that has a large amount of equity. the house is held in wife's name and a brother.

the husband name is not on title. once determined the

trustee wanted the house sold. to keep from selling the house a notice of vol dismissal was filed.

question: The court trustee's refused to dismiss the bankruptcy and wants a loan taken out on the house for 30,000.00 in addition the court trustee wants an addtional 2,800.00. or 10% of the bankruptcy amount to dismiss the a bankruptcy. Since this is real estate can the court make her sell her house or take out a loan. can the courts force her pay off creditors that doesn't seem like a dismissal. question since husband is not on the real estate can the court make her take a loan out for the hole bankruptcy amount. can this matter be fixed before she loses her home. can the judge in the matter be contacted or can you only deal with the court trustee's. thank you


Asked on 1/16/06, 10:17 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: discharge bankruptcy

If this goes to the judge he will probably order the house sold and the creditors paid. He cannot order that a loan be taken. All the creditors will be paid, not just 1/2, and the trustee is entitled up to 11% of the amounts paid to the creditors. Claiming that the house only belongs to one spouse is a foolish argument because a single person is entitled to only a $50,000 exemption whereas a family is entitled to a $75,000 exemption. When the house sells, the first $75,000 goes to the debtors (you and your wife), the balance goes to pay off your creditors. If there is anything left after the creditors are paid, then that amount goes to you and your wife.

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Answered on 1/17/06, 4:42 pm


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