Legal Question in Bankruptcy in North Carolina

Debtors who file in North Carolina and who have been residents in North Carolina for more than 26 months are entitled to claim $35,000 equity in real estate used as their residence. That amount is doubled for married debtors who file jointly. The amount is increased for an unmarried debtor who survives a former co-owner where the property was held by the entireties or with survivorship. The property is an asset of the estate and clear title cannot be conveyed until the trustee allows the 30 day limitations to file objections to pass and abandons the property. Abandonment can be by a 10 day negative notice or is automatic with the closing of the case. If you want to sell while the bankruptcy case is open, you must confer with the trustee. If the amount of the net proceeds exceeds the amount exempted, that will call into question the values listed on the petition. A debtor is under the obligation to update the information contained in the petition. If the debtor has a bona fide offer to purchase property in an amount that results in net proceeds in excess of the exempted amount, disclosure to the trustee and perhaps amendment of the schedules is required. Otherwise, if the net proceeds is within the amount exempted, no problem, but you will need abandonment from the trustee if the case is not yet closed. A bankruptcy lawyer will be able to submit appropriate documentation to the trustee to secure signature on the Notice of Abandonment and then will send the notice out to the creditor body. When the 10 days are up and there are no objections, sale can proceed. Any purchase agreement should specify this contingency. If there is an objection, the court will conduct a hearing.