Legal Question in Bankruptcy in California

Purchasing a house after bancrupcy.

I filed for chapter 7 bancrupcy October, 1999. At the time of filing, the value of my home was worth below the value that I owed on the home loan. Presently because of the home buying boom here in Northern California my home is worth more than what I owe on the loan. My question: If I sold my house and made a profit, would I have to give that money back to the creditors that I owe money to or can I use that money to put down on another home to purchase. Thankyou for your time. -Mark


Asked on 7/24/00, 8:31 pm

1 Answer from Attorneys
Barry Jorgensen The Law Office of Barry S. Jorgensen

Re: Purchasing a house after bancrupcy.

No, you would not have to pay it back, because technically the growth in equity occured after the bankruptcy. The creditors would have to file an action to overturn the discharge for fraud or mistake to challange your right to keep the increased equity, and they would have to show that the equity really was there before your discharge.

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Answered on 9/12/00, 10:11 pm


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