If you own your home, you may have reached a point where you are considering selling. If you are in active bankruptcy or your case has closed, you may have questions about when you can sell, if the equity in your home belongs to the bankruptcy estate, and whether you need to do anything additional to sell. This blog will explore answers to these questions and more.
You can sell your home during bankruptcy, but you must know the the timing and how to sell. If your home is exempted, you can sell it during your case, but you need to wait until at least 30 days have passed from your 341 hearing concluding. Generally, your hearing is concluded the day you have it. 30 days after the hearing concluding signals the ending of the objection period for your exemptions. When this period passes you own the equity in your home, free of the bankruptcy estate. Meaning that when you sell, the equity in your home is yours to use and is not subject to the bankruptcy estate. If there are no objections to the exemption on your home, you can sell after the bankruptcy is done, as well.
When you go to sell either during an open case or after your bankruptcy is closed, the title company you are working with will likely require verification your home was exempted in your bankruptcy. Your attorney should be able to help you get a certified copy of your Schedule C (which shows your exemptions).
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If you have questions about bankruptcy and would like to discuss your options in a free consultation, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!
