Legal Question in Bankruptcy in California

Net proceeds from real estate sale

I have a client that is filing for BK.(chapter 7) We have his house listed and we have an offer already accepted. He holds title with his wife and daughter and the net proceeds are not enough to pay the debt. What happens if we try to close escrow while in BK.?

Thanks


Asked on 10/20/03, 2:29 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Net proceeds from real estate sale

Almost always, a bankruptcy court will allow you to sell a home, especially if the proceeds of sale will help to pay something to creditors. The debtor can claim an exemption (between 17,000 and 125,000), and use the money to obtain other housing. What you do not want to do is sell the home first and then file bankruptcy--that would be financial suicide.

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Answered on 10/20/03, 8:44 pm


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