Legal Question in Bankruptcy in California

Re: Selling home while filing backruptcy

Yes...but you need to get BK court's permission to sell the house and also need to make an arrangement with the trustee so they do not come after the house.

Re: Selling home while filing backruptcy

The past due mortgage fees and expenses and penalties, etc. cannot be stripped--you have to pay them regardless of your exemption. You probably cannot strip the taxes, as the tax lien itself is not usually dischargeable in a bankruptcy. Interestingly, although, taxes can be discharged in a chapter 13 bankruptcy. So you might want to consider 13 as an alternative. You can file a chapter 7 (if you qualify under the means test) and then file a 13. If you file chapter 7, the trustee in bankruptcy will sell your house for you. As far as the money held in the escrow account goes, that will go to the US Trustee. If you use your homestead exemption, you may not be able to claim this money exempt (you will lose it). So, it appears from the info I have that You can claim your exemption, but the tax lien and the past due amounts on the mortgage will have to be paid (unless you file a chapter 13). Anything left will belong to you after real estate agent fees and trustee fees.