Legal Question in Bankruptcy in Texas

Trustee

In a Ch. 7 does a trustee take over secured, exempt

(house, car) that as an affirmation agreement? Can I

sell the house before final judgement and pay secured

debts? Can any leftover be taken by unsecured

creditors?


Asked on 3/20/03, 3:11 pm

1 Answer from Attorneys
Lawrence Maun Lawrence J. Maun, P.C.

Re: Trustee

If your house is your homestead it is exempt from creditors, except those with a money purchase security interest on the house, like you mortgagte company. If you file Chapter 7 your mortgage company will probably require that you reaffirm the debt to them, if you want to keep the house. Your equity in the house is exempt, so if after you file a Chapter 7 you sell the house you keep the proceeds above the mortgage payoff. If you sell the house before you file, while the proceeds, after debt payment, are exempt for 6 months you do risk losing them.Larry Maun 713.266.2560

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Answered on 3/20/03, 3:29 pm


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