Russell A. DeMott is a Charleston, South Carolina bankruptcy lawyer who represents consumer debtors in Chapter 7 and Chapter 13 bankruptcy. He is the author of the Charleston Bankruptcy Blog. He is also a member of the South Carolina Bankruptcy Blog. He files bankruptcy cases for clients in the Charleston, South Carolina division, which runs from Myrtle Beach to Beaufort. The DeMott Law Firm also represents clients in foreclosure defense and mortgage modification. You can also connect with Russ on Google Plus Russell DeMott. Russ can be contacted directly at (843) 695-0830 or by email at russ@demottlawfirm.com.

 

Author: Russell DeMott, Charleston Bankruptcy Lawyer

19 Jul Selling Your Home in Bankruptcy (Part One: Chapter 7)

If you've filed bankruptcyunder Chapter 7, you can usually still sell your home. But there is likely to be a delay before you can complete the sale, so you need to understand basic bankruptcy procedure.

Can your home be sold?

The answer is: It depends.

In fact, that's the initial answer to most bankruptcy questions. So if you're ever asked a bankruptcy question and want to sound like you know something about it, just answer, "well, it depends" while looking very serious. Stroke your chin a bit as you answer. Rest assured, "it depends" is the correct answer.

Now, let's now take a look at what your answer depends on.First, some basics. When a bankruptcycase is filed, section 541 of the Bankruptcy Code (we'll call it "the Code" from here on) provides that all the debtor's legal and equitable interests become assets of the bankruptcy estate. This happens instantly upon filing. Put simply, your stuff isn't yours anymore; it belongs to the bankruptcy estate.

However, under section 522 of the Code, you are allowed to keep, or "exempt", " certain assets. "Exemptions" are the items of property you get to keep safe from your creditors, up to a stated value (a certain amount of equity in your home, car, clothing, jewelry, and so on). The bankruptcy trustee can't take the shirt off of your back. You are allowed to keep enough property for a fresh start.

How much home equity you are allowed to keep depends on where you file your bankruptcy case.

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