Texas  |  Bankruptcy

Legal Question

Asked on: 5/10/04, 10:49 pm

selling a home in bankruptcy

i am currently in chapter 13, and have been for 18 months. i have another 18 months before the bankruptcy is due to be paid off. we would like to move, my question is, can we sell our house prior to the end of our 3 years we were to pay on the bankruptcy without having to give up our equity? if not when the three years is up and we sell are we going to be forced to give up our equity?

1 Answer

Answered on: 5/11/04, 9:33 am by Michael Dover

Re: selling a home in bankruptcy

Yes, you can sell, but you must file a motion to approve the sale with the bankruptcy court. You may also need to modify your plan. The proceeds from the sale of your homestead are exempt under Texas law, at least for 6 months after the sale. If you reinvest the proceeds in a new homestead within 6 months after the sale, there is no question that the proceeds and new homestead are exempt. If you do not reinvest the proceeds in a new homestead within 6 months, some trustees have taken the position that the funds cease to be exempt.

If you complete your plan, the trustee has no claim to any of your assets.

Did you find this answer helpful?

0 Users found this answer helpful.

0 Attorneys agree with this answer.

Michael A. Dover, PC 1405 Vontress Dr., Suite 1101 Plano, TX 75074

Other answers from this attorney

Didn't find what you were looking for? Ask an Attorney!

Get answers from the top Attorneys
Ask Question

115 Answers given in the last few hours.

8662 Active attorneys ready to answer your question

Search Past Answers:
  Advanced Search