Can I sell my house, keep 100% of the proceeds and move to another state with plans on purchasing another home to reside with no penalty or issues? 13 Answers as of July 09, 2014

I received dismissal on June 15, 2014 chapter 7. I am paying portion back on vehicle only. I own the home outright. We need to move to another state. Case is not closed yet. Do you see any issues or if we reinvest the money back into another home, is that all okay? Thank you.

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Law Office of Peter M. Lively
Law Office of Peter M. Lively | Peter M. Lively
You are not authorized to sell real property until after the case is closed or you obtain an order from the bankruptcy court abandoning the property from the estate to you. You should consult with a bankruptcy attorney regarding this matter.
Answer Applies to: California
Replied: 7/9/2014
John Ceci PLLC
John Ceci PLLC | John Ceci
Unfortunately there is not enough information to give a definite reply. Based on the information provided I would say it sounds possible that you could do what you want to do. I would not be comfortable saying more than that without reviewing the relevant documents.
Answer Applies to: Michigan
Replied: 7/9/2014
Ronald K. Nims LLC | Ronald K. Nims
I would advise against selling your residence until the bankruptcy case is closed. The reason you have the right to your house is that it qualifies for the "homestead" exemption. If you sell it, then it ceases to be a homestead and just becomes cash. There are arguments both ways and possibly the trustee won't get involved but if the trustee decides to sue you for turnover of the money, you'll be tied up in court for at least a couple months and possibly for years and will incur thousands in legal expenses. Unless there is some complication, usually bankruptcy cases are closed within a few weeks of issuing the discharge.
Answer Applies to: Ohio
Replied: 7/9/2014
Stephens Gourley & Bywater | David A. Stephens
Assuming the proceeds are within the homestead exemption amounts in your state, I do not see any problems.
Answer Applies to: Nevada
Replied: 7/8/2014
GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
There are a lot of legal nuances to your question. To get the proper advice, hire an attorney and pay for a one hour face-to-face meeting. Make sure the attorney is experienced (for example, make sure they have filed over five thousand bankruptcy cases). Any attorney worth his or her salt will charge you about $350 for a one hour visit. Bring all of your BK papers with you, in chronological order (you don't want to pay an attorney hourly to organize your file). To get appropriate answers to your legal questions, you need to proceed as suggested. Otherwise, you will be "penny wise and pound foolish".
Answer Applies to: Colorado
Replied: 7/8/2014
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    You need to talk to your lawyer now to discuss this, and, you cannot sell your house, generally, without bankruptcy court approval while your case is still pending. If you didn't have a lawyer in the bankruptcy, you probably will need one before doing anything.
    Answer Applies to: Illinois
    Replied: 7/8/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    Did you really mean that your Chapter 7 was dismissed or did you confuse the word discharge with dismissed? Because a dismissal closes a case out right away, but a Chapter 7 case can remain open after a discharge for many months. Please try to use exact legal terms when posting a question, because you are bound to get a wrong answer when you use the wrong word.
    Answer Applies to: Nevada
    Replied: 7/8/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    You received a dismissal or a discharge? If you received your discharge but your case is not closed then you cannot sell your house because the proceeds will no longer be exempt under the homestead exemption.
    Answer Applies to: New York
    Replied: 7/8/2014
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    That is fine as long as the equity in the house was exempt.
    Answer Applies to: New York
    Replied: 7/8/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    The fact that the case is not closed is a huge problem. If you do not have a lawyer you better get one. The reason it has not closed is most likely the trustee wants to sell the house. I don't know what state you are in, the homestead exemption is different everywhere. You need to find out why case is still open.
    Answer Applies to: California
    Replied: 7/8/2014
    Arany & Associates
    Arany & Associates | Lawrence C. Arany
    Sounds like you are about to get a BK discharge and that your BK trustee is taking only part of the equity in your vehicle, and not in your house. IF that's true, then its ok to sell your house and hold the proceeds. I suggest that you confer with your BK attorney!
    Answer Applies to: Indiana
    Replied: 7/8/2014
    EDWARD P RUSSELL | EDWARD P RUSSELL
    If your Ch 7 case was terminated without discharge which should be by order of the court then the case should be closed. You can call the bankruptcy court and request that the case be closed. ?If you received a discharge then the case should also be closed. Assuming that one of these 2 things happened then the bankruptcy estate should be closed and you should be able to do anything you want to do. If neither of these two happened then your case is still open and so is the bankruptcy estate administered by the Ch 7 trustee. Depending upon the exemptions in the schedules the trustee could have an interest in your assets.
    Answer Applies to: Minnesota
    Replied: 7/8/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Until your case is closed at the court you do not have the right to sell your home without an Order for Abandonment from the court. You say your case was dismissed, but it seems as though you may mean discharged - there is a big difference. You also don't state whether there is any non-exempt equity in your home that your trustee has the right to. Without knowing what state you are in, what the value of the home is, whether it was properly listed and disclosed in your bankruptcy schedules, and whether you correctly claimed any exemptions to which you were entitled, it is impossible to answer your question in any greater detail.
    Answer Applies to: Colorado
    Replied: 7/8/2014
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