Legal Question in Bankruptcy in Wisconsin

Once your bankruptcy case is discharged and closed, the court and trustee have no claim to any of your assets including the proceeds of your home sale. There could be rare exceptions wherein you lied about the home's value in your bankruptcy where the case could be reopened, but so long as you were honest and accurate in your bankruptcy paperwork and testimony, you should not have any problems. However, if you case is still active or open, you need to consult with your attorney and/or trustee in order to make sure that nothing is owed to your creditors from the sale. You should never attempt to sell or otherwise transfer any significant asset without permission of the trustee while your case is open. Chapter 13 cases can remain open for up to five years after confirmation, so you do need to be careful. Generally speaking, the buyer (or buyer's lender) will insist upon your getting permission from the trustee before selling. If you have filed a case where your home is not totally claimed under a proper exemption (somewhat rare these days since WI increased its exemption to $75000 per debtor), then the trustee may conduct a sale in certain unusual circumstances. Proceeds of the sale will be applied first to certain administrative expenses of the case, then to creditors in order of priority. If there is money left over after payment of all sale expenses, priority claims, liens and exemptions, anything left over will indeed go to pay unsecured creditors. My comments in this online forum are offered for public educational purposes only and are not legal advice, nor do they create any attorney/client relationship between us. However, I may be able to formally represent you if you contact my Racine office and make arrangements to retain me. I also represent clients throughout WI.