Can we sell our home and use the equity to buy another home? 25 Answers as of July 11, 2014

We want to sell our house. We filed Bankruptcy 7 in 2012. However we did not reaffirm our home. Can we sell our home and use the equity to buy another home? We are current on home now.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Stephens Gourley & Bywater | David A. Stephens
Yes you can.
Answer Applies to: Nevada
Replied: 7/11/2014
EDWARD P RUSSELL | EDWARD P RUSSELL
Yes, you can sell the house as you own it. The bankruptcy discharged the mortgage debt but the mortgage company still has a lien, i.e., balance due on the mortgage, and will receive that money when you sell the house from the proceeds of the sale.
Answer Applies to: Minnesota
Replied: 7/10/2014
Law Office of Marlin Branstetter
Law Office of Marlin Branstetter | Marlin Branstetter
Unless there is some reason that your case is still open you should have no problem selling your home.
Answer Applies to: California
Replied: 7/10/2014
Ronald K. Nims LLC | Ronald K. Nims
The lender on your present home has a lien against it and the amount of that lien is determined by whether you have made payments on the house since the bankruptcy. Since you didn't reaffirm, I assume that you haven't made any payments - in that case the interest and the late payment penalties have probably raised the lien so high that you have no equity left.
Answer Applies to: Ohio
Replied: 7/10/2014
Law Office of Peter M. Lively
Law Office of Peter M. Lively | Peter M. Lively
Yes, if your prior Chapter 7 case is closed. Reaffirmation does not affect your ability to sell.
Answer Applies to: California
Replied: 7/9/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    As long as your Chapter 7 bankruptcy is fully closed, you may sell your home and use the proceeds in any way you like. But simply having a bankruptcy discharge is not proof that your case is closed. If your case is not closed, you will need court permission to transfer the title to your house.
    Answer Applies to: Nevada
    Replied: 7/9/2014
    Hayward, Parker, O'Leary & Pinsky, Esqs.
    Hayward, Parker, O'Leary & Pinsky, Esqs. | Michael O'Leary
    Assuming that your Trustee is not administering the house and your case is closed, you are free to sell the house and enjoy the benefit of the equity.
    Answer Applies to: New York
    Replied: 7/9/2014
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    Yes, you can sell your house, as long as the outstanding mortgage is satisfied.
    Answer Applies to: Kentucky
    Replied: 7/9/2014
    Marc S. Stern
    Marc S. Stern | Marc S. Stern
    That should not be a problem. However, before you start looking make sure that the bankruptcy case is closed and the home abandoned. There are two (2) parts of every bankruptcy. The first is the discharge. The second is administration of the estate assets. The discharge is usually granted 60 days after the ? 341 meeting. The case may be open for administration for years. A great number of people, including attorneys, do not seem to understand the difference. If you are thinking about selling the house, make sure that the case is closed and the house abandoned.
    Answer Applies to: Washington
    Replied: 7/9/2014
    Idaho Bankruptcy Law | Paul Ross
    Yes, you can sell the home, as long as your bankruptcy is closed.
    Answer Applies to: Idaho
    Replied: 7/9/2014
    Law Office of Melissa Botting | Melissa Botting
    Yes, you can sell your home. The equity in a homestead is free from creditors if it is invested in a new homestead within 6 months of the sale.
    Answer Applies to: Texas
    Replied: 7/9/2014
    MCBRIDE LAW OFFICE | Robert E. McBride
    So long as your bankruptcy case has been closed, you can sell your home even though you did not reaffirm. If you plan to borrow in order to purchase a new home, your relatively recent Chapter 7 case could present a problem. You might want to ask lenders about your chances of getting a loan before selling your house.
    Answer Applies to: Pennsylvania
    Replied: 7/9/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Yes, you can do that.
    Answer Applies to: California
    Replied: 7/9/2014
    Arany & Associates
    Arany & Associates | Lawrence C. Arany
    I love your question because my answer will be good news: Most probably, yes! I suggest your consult your bankruptcy attorney, in case your case is still open and being administered by your chapter 7 trustee. Your attorney will be able to advise you about how to handle the issue of an anticipated proceeds that exceed the amount of your bankruptcy exemption related to your home. Good luck!
    Answer Applies to: Indiana
    Replied: 7/9/2014
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Absolutely, as long as you pay off the mortgages that you voluntarily placed on your previous home when you sell it you will have no problem. If you would like to speak further about the real estate closing process or consult regarding attorney representation, please contact us. We would be happy to facilitate a purchase or sale for you.
    Answer Applies to: Connecticut
    Replied: 7/9/2014
    Bunch & Brock, Attorneys-at-Law
    Bunch & Brock, Attorneys-at-Law | W. Thomas Bunch II
    After a Chapter 7 bankruptcy case has closed, all property that was listed in the petition is deemed abandoned by the Trustee. So, even though you did not formally reaffirm the mortgage, you can sell the home, pay-off the mortgage, and keep the equity. I'm sure that the mortgage company will cooperate with the closing attorney to provide a correct payoff - it gets them paid! Good luck!
    Answer Applies to: Kentucky
    Replied: 7/9/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If your case has been closed, then there is nothing stopping you from buying another house with the equity. Just make sure you can qualify for a new mortgage.
    Answer Applies to: New York
    Replied: 7/9/2014
    Garner Law Office
    Garner Law Office | Daniel Garner
    Yes, that's no problem.
    Answer Applies to: Oregon
    Replied: 7/9/2014
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    The simple answer is yes. I presume your trustee abandoned whatever equity might be in the house at discharge so you're good to go. Good luck and don't buy too much house.
    Answer Applies to: California
    Replied: 7/9/2014
    Law Office of Pho Ethan Tran PLLC
    Law Office of Pho Ethan Tran PLLC | Pho Ethan Tran
    Yes. As long as the bank has not foreclosed on the property yet, you should be able to sell your house and use the proceeds to buy another.
    Answer Applies to: Texas
    Replied: 7/9/2014
    Law Office of J. Thomas Black, P.C.
    Law Office of J. Thomas Black, P.C. | J. Thomas Black
    Yes, you can sell your Texas home and reinvest the proceeds into a new home. If your bankruptcy is still open, and you chose the exemptions available under Texas law, and you sell your home, you MUST reinvest the proceeds of a homestead sale into a new homestead within 6 months, or the chapter 7 trustee could take the proceeds. If your chapter 7 case is discharged and closed, that should not be an issue.
    Answer Applies to: Texas
    Replied: 7/9/2014
    Law Office of Shawn N. Wright | Shawn N. Wright
    Yes, you should absolutely be able to sell the house and purchase another.
    Answer Applies to: Pennsylvania
    Replied: 7/9/2014
    Wellman Law LLC
    Wellman Law LLC | Keith A. Wellman
    The purchase price will be enough to pay off the lien, so the fact that it was not reaffirmed really shouldn't have any effect on anything. And because you're planning to put the equity into the next home you really don't have any issues that I can see. Technically you didn't state in your fact pattern that the Trustee had abandoned the estate's interest in the home and some Chapter 7's actually do drag on for 2 years. I'm guessing you would be well aware if the Trustee was holding your case open for this long looking at assets, but I would check with the Court that it's closed and if not review any report related to Distribution.
    Answer Applies to: Kansas
    Replied: 7/9/2014
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney