Legal Question in Bankruptcy in California

Homestead Protection in Chapter 7 Bankruptcy

In the State of California, if I filed a Chapter 7, "straight bankruptcy" and planned to keep my house (divorce in process), and decide (with spousal agreement) to sell the house, can the creditors come back and take any profit made from the sale? All this will happen within approximately 2-3 months after filing.


Asked on 4/29/98, 12:07 pm

2 Answers from Attorneys
Mark Markus Law Office of Mark J. Markus

Homestead Protection in Chapter 7 --REPLY

THat depends on what the value of your house is, what is owed against it, what exemptions you utilize and whether the Trustee in your Ch. 7 case asserts any interest in the property (i.e. if it had equity available). I suggest you visit my web page and if you have further questions, feel free to give me a call. Mark

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Answered on 5/19/98, 8:28 pm
Ken Koury Kenneth P. Koury, Esq.

It should be OK

As long as your equity is fully covered by exemptions you should be ok but to be on the safe side I would wait until the discharge before selling.

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Answered on 5/20/98, 12:01 am


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