Legal Question in Bankruptcy in California

Protecting The Equity In My Home

I need to know why the bankruptcy trustee is allowed to sell my home when, ''from my understanding of the law'', if there is excess equity which exceeds the amount of the homeowners excemption and the amount owed to the creditors, my home can be sold? In our case we have a combined 1st and 2nd mortgages of about $50,000 of our filing date April 2000 and we have an appraisal dated as of April 2000. The appraisal came in at $190,000 and if you subtract the $125,000 homestead excemption that leaves $65,000 minus our $50,000 loans leaves $15,000 and then minus the realtors 6% commission, on $190,000, which is $11,400, that only leaves $3600 for creditors.

Even though we have submitted the appraisal, the bankruptcy trustee chose to use a broker that valued our home at $235,000. To make matters worse, the bankruptcy trustee left our home open for future sale. It's been 11 months now since we filed for bankruptcy and of course, our home has appreciated in value in the last year. Who is entitled to this appreciation? How long can the trustee keep this sale of our property going on? ''Why can't the trustee be fair and ask the realtor to prove his valuation of $235,000 as of April 2000?


Asked on 3/18/01, 2:03 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Protecting The Equity In My Home

I dont understand what the issue is. even under your appraisal the home must be sold. any appreciation will go to creditors. any appreciation above what creditors are owed goes to you.

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Answered on 6/06/01, 2:15 am


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