Legal Question in Bankruptcy in California

my home was sold through a bankruptcy, should i receive something from the loan co stating that im clear of any cost.

Asked on 2/26/11, 10:33 am

1 Answer from Attorneys

Tony Carballo Carballo Law Offices

Houses are rarely sold through bankruptcy. That only occurs when there is enough equity (value above what is owed the holders of the liens on the home) above the homestead exemption available so that the sale would net sufficient funds to the bankruptcy estate to pay creditors.

Maybe you mean that the bank foreclosed on the deed of trust on your home while you were involved in a bankruptcy case.

If you received a discharge from the bankruptcy court then that means all your debts are gone, except for those debts that are not dischargeable or erasable in bankruptcy such as student loans (generally), domestic support obligations (child or spousal support) and fines among others. If in fact the bankruptcy case trustee sold your home in your bankruptcy case, then you would certainly not owe anything related to the home.

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Answered on 2/26/11, 5:29 pm

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