Legal Question in Bankruptcy in California

Re: stop sale of home under chapter 7

Well, unfortunately about the only thing you can do is try to convert the case to CH. 13. In a Ch. 7 the Trustee is entitled to any appreciation in equity in the property. You should amend your schedules to include any homestead exemption to which you may be entitled. If you are single, in California this would be $50,000. It sounds to me like the house was undervalued in your bankruptcy papers, since houses generally don't go up $200,000 in a couple of months.

Re: stop sale of home under chapter 7

Once a case is filed, the Debtor has only a limited number of options as to how the case will proceed. These include converting the case, dismissing the case, or simply allowing the Trustee to take charge.

In a chapter 7, the Debtor gives up the non-exempt assets to the Trustee in exchange for a discharge of dischargeable debts. You should carefully review the exemptions that you took, especially, if the equity in the home is what you are trying to protect.

In a chapter 11 or chapter 13, a Debtor has more control over the case. It sounds like you already converted your case which is generally approved automatically the first time. Court approval is required to convert again.

Court approval is required to dismiss your case but is easier to do so in a chapter 11 or 13.

Good luck to you.