Legal Question in Bankruptcy in New Jersey

You should be posing this question to your bankruptcy attorney (unless you already have done so and are simply looking to see if you get a different answer). Wildcard is not $11,975. It is $1,150, plus $10,825 of UNUSED homestead exemption. If you use your full $21,625 homestead exemption, then you will not have any "unused" homestead exemption. You would have $1,150 of wildcard to supplement your $21,625 homestead exemption. Nevertheless, you are correct that the Trustee will do an analysis of whether it is "worth it" to sell. You need to be careful, however, to analyze everything before filing so you do not encounter an unexpected and unhappy result. Once a Chapter 7 is filed, you do not have the right to dismiss it just because you encounter an unexpected result. Generally speaking, if you have too much equity you can file a Chapter 7 and be prepared to "buy back" your non-exempt equity from the Trustee in lieu of a Trustee sale, but you must have the means to do so over a relatively short period of time. Otherwise, you would have to convert to a Chapter 13 to avoid sale of your home. Or file a Chapter 13 from the beginning after your situation is analyzed. From your question, I have assumed that you are the sole owner of your house. If not, my comments would be different. It is my suggestion that you discuss these matters thoroughly with your bankruptcy attorney. If you have not retained an attorney, I strongly suggest that you do so in order to benefit from professional counsel after a detailed analysis of your exact situation.

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